BERLIN, Germany: Amidst a payments stand-off with Russia, which has demanded "unfriendly" countries pay for its gas in roubles, Germany and Austria have activated emergency plans due to possible gas supply disruptions.

The European Union (EU), which mainly pays for Russian gas in euros, has rejected the Russian demand, and Moscow later appeared to soften its stance, stating, that rouble payments would be introduced gradually.

However, Germany and Austria have taken the first steps towards gas rationing, urging consumers and companies to reduce consumption.

Russia, which provides Germany with about half its gas and one-third of its oil, has warned that Germany could face a recession if supplies suddenly stopped.

Austria receives 80 percent of its gas from Russia, but Austrian Chancellor Karl Nehammer's office said measures, such as gas rationing, would only be implemented in an "immediate crisis."

Meanwhile, Robert Habeck, German economy minister, said the country's gas supplies were safeguarded for the time being, but it would intensify its precautionary measures if Russia escalates the situation.

Klaus Mller, head of German network regulator Bundesnetzagentur, said the country aims to avoid a deterioration in supply, urging consumers and industry to prepare for "all scenarios."

Meanwhile, Kremlin spokesman Dmitry Peskov said Russia would not immediately demand payments in roubles, stating, "Payments and delivery is a time consuming process. From a technological point of view, this is a more prolonged process."

The West has heavily sanctioned Russia since its invasion of Ukraine, and in response Russian President Vladimir Putin has demanded that natural gas exported to Europe should be paid for in roubles.

Russia could also start demanding payment in roubles for other commodities, such as fertilizers, grains, metals and timber, the Kremlin warned.

S&P Global energy analyst Laurent Ruseckas said Russia and the EU were involved in "a game of chicken" over who would back down first.

In an interview with the BBC World Service, he said, "Putin started it ..with his first comment about requiring the change to payment in roubles, and now the EU has responded at a political level, saying: 'Well, no, we won't.'"

The most likely next step was for the EU and Gazprom to compromise by redrawing contracts, as both sides have an interest in resolving the stand-off, he added.