He knows by spring of next year what a mess Russia will be in, selling less oil and gas at heavily discounted prices when oil prices are much lower, and the full effects of the sanctions wreaking havoc in full measure. A RAT JUMPING OFF A SINKING SHIP.
The change in how the markets value the ruble has kicked in today. The Central Bank of Russia (CBR) no longer gets to set the value for the ruble so it’s going to float freely on the international market where for much of that market the effective value of the ruble is zero (due to sanctions).
The market is already starting to devalue the ruble:
“The Russian currency is still significantly weaker in banks. VTB, Russia’s second-largest bank, proposed selling cash dollars and euros for 84.00 and 89.00 roubles, respectively.”
I’m taking a short position on the ruble 120 to $1 for June 13 close of market. I guess we’ll see how it goes.
Thinking some more about this article, I believe this is Putin getting ready to soften his demands, and maybe, maybe, even pull out of East Ukraine (not Crimea).