Russia will stop supplying gas to countries it deems “unfriendly” unless they are paid in rubles, according to a presidential decree effective immediately.

Buyers from 48 countries, including the European Union, will be required to open a foreign currency and ruble bank account with Russia’s Gazprombank, according to the decree published on Thursday. The targets are countries that have imposed sanctions on Russia’s economic, government, and business elites over Russia’s invasion of Ukraine.

Vladimir Putin said on Thursday that Russia was working on “clear and transparent plans” for these foreign clients.

He added in a speech to the Kremlin: “If such payments are not made, we will consider it a default by the buyer – and all the consequences that follow.”

decisions and threats of supply disruptions, The past week has been mainly raised by the Russian president, has caused panic in European countries that are heavily dependent on Russian gas. Germany said on Wednesday it was preparing for energy rationing.

Putin gave the central bank, customs authorities and the government 10 days to implement the new system. Similar payment methods for other commodities such as oil, metals and fertilizers are also being considered.

German Chancellor Olaf Scholz said on Thursday he had told Putin that Germany had checked its gas transport contract with Russia and would continue to pay in euros and sometimes dollars.

French Finance Minister Bruno Le Maire told a news conference with German Foreign Minister Robert Habeck that France and Germany are preparing for all scenarios, including Russia cutting off gas supplies to Europe. The pair also expressed opposition to paying for gas transportation in rubles.

“Contracts include clauses that say they must be settled in a currency, so contracts must be settled in that currency,” Le Maire said.

A French finance ministry official later said that in its analysis, the contract would be paid in euros to Gazprom, which would then convert the payment into rubles. “Given the uncertainty, we are preparing contingency plans for gas supplies.”

The Eastern German Business Association, which promotes trade links with Eastern European countries, called on Russia to “respect existing gas supply contracts without any modification”.

“Through unilateral changes, Russia is jeopardizing decades of energy relations with Germany and the European Union and accelerating the demise of this business model,” it added.

Putin said the reason for switching the payment method to rubles was the weaponization of the Western financial system.

“It doesn’t make sense to use the currencies of these countries when companies from these countries refuse to perform their contracts with Russian banks, businesses, individuals, when assets in dollars and euros are frozen,” he added.

“Transferring payments for Russian gas supplies into Russian rubles is an important step in strengthening our financial and economic sovereignty.”

Putin added that Russia will try to use its currency as a means of payment for other exports.

“As part of our long-term plan, we will continue to move consistently and systematically in this direction to increase the share of foreign trade settlements denominated in our own currency and the currencies of trusted partner countries.”

Additional reporting by Harry Dempsey and Olaf Storbeck