Russian President Vladimir Putin has signed a decree requiring Russian gas buyers from countries considered hostile to pay in rubles - from Friday - using a separate account at a Russian bank, or face termination of their contracts. .

His move was rejected by European governments, with Germany - Europe's industrial power - calling it "political blackmail", writes Al Jazeera, reports Telegrafi.

But what lies behind Putin's order?

Putin's order is in retaliation for unprecedented Western sanctions imposed on Russia for its aggression in Ukraine, which Moscow says are similar to an economic war.

"If such payments [in rubles] are not made, we will consider this a non-payment by the buyers, with all the consequences that follow.

"Nobody gives us anything for free and we will not do charity either - that is, existing contracts will be terminated," Putin said on Thursday.

The ruble fell to historic lows after Putin sent his troops to Ukraine on February 24 as the United States and its allies moved to oust Russia from global payment systems, barred its central bank from capital markets and froze hundreds of billions of dollars of its reserves.

The currency, however, has risen since Putin's decision to implement ruble payments.

On Thursday, more than a week after the Russian president said for the first time that Moscow would start selling gas to "unfriendly countries" in rubles, the currency traded at 81.7 against the US dollar, almost at the same level as on the 23rd. short.

According to Al Jazeera, so far this year, Europe has spent 200 million to 800 million euros ($ 880 million) per day on Russian gas, reports Telegrafi.

These sales are already greatly weakening the effect of sanctions, regardless of how payments are made - and while converting amounts into a stronger ruble "will supply Russia's coffers" seems to have a political purpose, made western countries forced to circumvent their sanctions.

Why is this important?

Europe is heavily dependent on Russia for its energy needs, with about 40 percent of its gas coming from this country.

If Moscow decides to shut off the taps, it could cause power outages, plant closures and damage to energy costs across the European region.

The consequences are particularly high for Germany, Europe's largest economy and an industrial power.

Before the start of Russian aggression in Ukraine, 55 percent of its gas imports came from Russia, with a figure that fell to 40 percent in the first quarter of 2022.

The German government, which has accelerated plans to rid itself of dependence on Russian gas and diversify its supplies, has already activated the first phase of a three-step emergency plan that could mean "energy rationing" if supplies gas fall a lot.

Dutch gas prices, the European benchmark, have already reached record levels this year for supply concerns, boosting inflation in the region and increasing the risk of recession.

Which countries are affected by this?

The list of "unfriendly" countries consists of those that have imposed sanctions on Russia.

They include the United States, European Union member states, Canada, Japan, Norway, Singapore, South Korea, Switzerland, Ukraine and the United Kingdom.

Some, including the US and Norway, are not buyers of Russian gas.

What will foreign buyers do?

So far, it seems impossible for foreign buyers to make any changes.

Western countries have said the ruble payment would violate contracts that could take months or more to renegotiate.

"There is not much opportunity for Europe to pay directly in rubles," said Christian Lawrence, a senior market strategist at Rabobank.

"Putin has been quite clear that he needs rubles for that gas.

So if that happens, I think he goes through a third party.

"But we will have to wait and see how it goes."

How would it work?

Putin's order makes Gazprombank an intermediary in the gas trade.

Britain placed Gazprombank on its list of banned entities earlier this month.

It was not included in the European Union order that excluded some Russian banks from the SWIFT messaging system.

"Potentially, the Kremlin is acting out of fear that Gazprombank will be sanctioned soon, amid a wider effort by the European Union to completely cut off energy ties with Russia," analysts at Fitch Solutions told Al Jazeera.

"Long-term contracts for the purchase of natural gas from Russia are denominated in euros and therefore, without renegotiating the contract, there is no legal basis for Russia to implement this requirement."

What happens next?

It is unclear.

Russia will have to physically halt gas flows to the EU to force the issue, which would mark "a major escalation that did not occur even at the height of the Cold War," according to Fitch Solutions.

Meanwhile, the bloc could move forward by imposing a brake on Russian energy exports.

And the European Commission is reportedly preparing new sanctions against the Kremlin, with the size of the new measures depending on Moscow's stance on gas payments in rubles.

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