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اردو
World
Russia Retaliates on Sanctions; "Unfriendly Countries" Can Only Buy Gas with Rubles
Russia has adopted a very (VERY) Slick financial move; they have decided that "unfriendly countries" (those that have imposed economic sanctions upon Russia) can still buy Russian Gas and Oil, but the purchases must be done in Rubles. That means those countries will have to sell currency on the Moscow Exchange!
Comments
"To pay in ruble one first has to buy rubles. With higher demand for rubles and no change in supplies the price for the Russian currency will go up. As Russia is selling hydrocarbons and other resources for billions of dollars per day the ruble is likely to soon reach record heights.
On February 28 another round of sanctions hit Russia. The part of the Russian central bank reserves that were stored in the 'west' were frozen. The central bank immediately pushed its interest rate from 9% to 20% to prevent a flight from the ruble. This helped to lessen the damage but made credit expensive and has hit the future growth potential in Russia.
But with a high new rubles demand from the outside of Russia the central bank will soon be able to lower its interest rate to more normal levels. Credit conditions will ease and investment in Russia, to replace products that had so far been imported, will rise again."
Vice President Biden, covering for his son in UKRAINE!
I said, nah, I’m not going to—or, we’re not going to give you the billion dollars. They said, you have no authority. You’re not the president. The president said—I said, call him.
(Laughter.)
I said, I’m telling you, you’re not getting the billion dollars. I said, you’re not getting the billion. I’m going to be leaving here in, I think it was about six hours. I looked at them and said: I’m leaving in six hours. If the prosecutor is not fired, you’re not getting the money. Well, son of a bitch. (Laughter.) He got fired. And they put in place someone who was solid at the time.
Quoting supporttheblue:
Quoting supporttheblue:
You don;t know your history... SEE: https://knowledgenuts.com/how-the-russian-navy-saved-the-union-in-the-civil-war/
The ruble is backed by gold now, too :-D
The Evil people running the USA wanted regime change in Russia so they can steal all the resources. It has been a dream of Wall Street for decades.
they sanctioned the markets and banks in moscow, so they would need to open accounts with sanctioned banks
also swift sanctioned.. no way to transfer funds
There's where Russia can REALLY twist the knife.
They've just demanded that the EU pay for Russian natural gas in rubles. Since the EU has no alternative to Russian natural gas, the EU WILL have to buy rubles to pay for natural gas.
You've correctly pointed out Russian banks are sanctioned from SWIFT....but payments for Russian natural gas were excluded from that, since the EU cannot afford to go without the gas.
However, Russian can also demand that payments for their natural gas.......be settled using SFPS, the Chinese SWIFT alternative. Since the EU cannot afford to go without the gas, they WILL settle payment through SFPS.
The west pushed to hard.
No one ever challenged the petro-dollar or SWIFT before, because the perceived "financial nuclear" penalties (being locked out of SWIFT and the petro-dollar trade) were judged to be too high.
But the west went and imposed the "financial nuclear" penalties on Russia......which blew their deterrent to a challenge against SWIFT and the petro-dollar.
The "Law of Unintended Consequences" strikes again.
I applaud this return to shutting out all the arbitragers, hedgers, monopolists, speculators, and all the other ways of making money without working. Good for them. May this continue far past this war, and spread to all commodities.
The fools in charge will make sure ‘they’ won’t suffer unless they pass it in down to us.
Western minions who think they control and bully the world were given enough rope to hang themselves.
Russia has had a reason for the invasion based on how its citizens in the Donbass have been killed and wounded since 2014 by the Ukrainian government shelling and oppression. Bush had a fake reason, WMD that did not exist but the oil was there for his ulterior motive. Never trust a Bush.
Napoleon was correct - "China is a sleeping giant but when it wakes the world will shake".
Maybe Russia chooses to renew the contracts.
Maybe not.
The EU currently has no alternative to Russian natural gas, so the EU countries will TRY to renew the contracts.
Russia has just announced that if the EU wants to buy Russian natural gas......they will have to buy Russian rubles to pay for it.
With the stroke of a pen, Russia has just backed its currency with commodities....in this case, energy (natural gas and oil).
The same scheme has until now allowed the dollar to remain as the world's reserve currency.....the "petro-dollar". Until now.....all oil purchases had to be payed for in dollars, forcing all countries who consume oil to buy dollars (creating a perpetual demand for dollars).
THIS Russian executive order just created the petro-ruble, a direct challenger to the petro-dollar.
And since the EU has no alternative to Russian natural gas, they WILL have to buy the petro-ruble to pay for it.
The Chinese invented paper money but never really liked it!
I don't need Russians or NATO here.
Take your fucking NATO and go fight from the country you are in.
Your country should consider getting out of NATO, possibly even the EU, and increasing the scope of the Visegrad Group.
Ol' Joe and his crowd play whack-a-mole -- badly. The Russian mole is one smart cookie!
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