Putin’s Gas-for-Rubles Gambit Hits EU Fault Lines as Stakes Rise
- Cutoffs to Poland and Bulgaria raised alarms throughout EU
- Both sides face significant risks if standoff escalates
Source: Bloomberg
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After suffering months of punishing sanctions, Vladimir Putin used a powerful tool to impose some economic pain on Europe -- and to fracture the unity of his opponents -- by shutting off natural gas this week to a pair of NATO members.
The Russian president’s decision to cut off Poland and Bulgaria and the risk of more disruptions hits Europe where it really hurts, and where the bloc is least prepared to adjust. The continent needs several years to arrange alternative supplies to power its industry and heat its homes, but Putin forced the issue with his sudden announcement last month that he wouldn’t accept anything but rubles for shipments after Apr. 1.