Can Russia unilaterally change existing gas contracts?

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Russia's Ability to Unilaterally Change Existing Gas Contracts Remains Unclear

It is currently unclear whether Russia possesses the legal authority to unilaterally alter existing gas supply contracts that specify payment in euros. President Vladimir Putin announced that payments for gas supplied to "unfriendly" nations would henceforth be required in roubles. This directive has raised significant concerns regarding contract enforceability and potential breaches.
Contractual Currency Provisions and Amendments

Existing long-term gas contracts, such as the one held by Dutch supplier Eneco, are typically denominated in euros and do not easily accommodate changes to payment terms. German Economy Minister Robert Habeck has publicly stated that Putin's demand constitutes a breach of contract. Similarly, a senior Polish government source indicated no intention to sign new contracts with Gazprom beyond their current agreement's expiry at the end of the year, citing the existing payment rules.
Payment Currency Practices in European Gas Sales

As of January 27, data from Gazprom indicated that a substantial portion of its European sales were settled in euros, accounting for 58% of transactions. US dollars comprised approximately 39%, with sterling making up around 3%. This highlights a long-standing reliance on major international currencies for energy trade, which are generally transacted in either US dollars or euros, making up about 80% of global currency reserves.
Timeline and Potential Responses to the Demand

President Putin has given the Russian government and central bank one week to devise a plan for shifting payments to the rouble, with Gazprom expected to be instructed to implement corresponding contract alterations. European nations are considering their collective response, with Dutch Prime Minister Mark Rutte suggesting that more time is needed to fully clarify Russia's demand, noting that contractually specified payment currencies are not easily altered.

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Can Russia unilaterally change existing gas contracts?

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