The Group of Seven industrialized nations' energy chiefs unanimously opposed Russian President Vladimir Putin's demand for natural gas contracts to be paid in rubles.
The directive is a "clear breach of contract," German Economy Minister Robert Habeck stated Monday following the conclusion of G-7 talks.
"This indicates that a payment in rubles is inadmissible, and we urge the relevant enterprises to refuse Putin's demand," the officials said.
The decree requiring "hostile governments" to make natural-gas payments in rubles would essentially compel European corporations to actively support the currency following the collapse of the Russian economy as a result of sanctions imposed in response to Moscow's invasion of Ukraine.
Putin directed his government, Gazprom, and the central bank to complete all essential documentation for the March 31 changeover to ruble payments.
Germany is now the G-7 club of developed countries' president, and Habeck is also the energy minister in Chancellor Olaf Scholz's ruling coalition.
Even as the March deadline approaches, neither Russian government officials nor Gazprom executives have provided details on how the unexpected order will be enforced.
Last week, European Union leaders likewise vehemently condemned Russia's proposal to compel payment in rubles.
"This is a breach of contract, and contracts will be considered breached if Russia complies with this condition," Italian Prime Minister Mario Draghi told reporters in Brussels on March 24.
Europe imports almost 40% of its gas from Russia and is already coping with the consequences from this winter's high costs.
"Putin's attempt to split us is evident, but you can see that we will not be divided, and the G-7 response is unequivocal: the contracts will be honored," Habeck added.
Separately, Scholz reaffirmed Monday that gas contracts must be honored in the currency agreed upon at the time of signing.
"As I previously stated, the contracts that we are aware of are largely in euros, and the corporations will pay them in euros," Scholz told reporters following meetings in Berlin with his Swedish counterpart.
Putin declared last week that Russia will now require "hostile" countries to pay for natural gas only in Russian currency.
He directed the central bank to devise a process for natural gas purchasers to obtain rubles in Russia.
Economists said the action looked to be intended to shore up the ruble, which has depreciated significantly against other currencies since Putin invaded Ukraine on Feb. 24 and Western countries retaliated with broad sanctions against Moscow.
