Posted on 03/23/2022 7:47:44 AM PDT by Oldeconomybuyer
March 23 (Reuters) - Russia plans to switch its gas sales to "unfriendly" countries to roubles, President Vladimir Putin said on Wednesday, responding to a freeze on Russia's assets by foreign nations over events in Ukraine that he said had destroyed Moscow's trust.
European countries' dependence on Russian gas and other exports has been thrown into the spotlight since Russia sent tens of thousands of troops into Ukraine.
“Russia will continue, of course, to supply natural gas in accordance with volumes and prices ... fixed in previously concluded contracts," Putin said at a televised meeting with top government ministers.
"The changes will only affect the currency of payment, which will be changed to Russian roubles," he said.
Putin said the government and central bank had one week to come up with a solution on how to move these operations to the Russian currency and that gas giant Gazprom would be ordered to make the corresponding changes to gas contracts.
According to Gazprom, 58% of its sales of natural gas to Europe and other countries as of Jan. 27 were settled in euros. U.S. dollars accounted for about 39% of gross sales and sterling around 3%.
Russian gas accounts for some 40% of Europe's total gas consumption.
Russia has drawn up a list of "unfriendly" countries, which corresponds to those that imposed sanctions. Among other things, deals with companies and individuals from those countries have to be approved by a government commission.
The list of countries includes the United States, European Union member states, Britain, Japan, Canada, Norway, Singapore, South Korea, Switzerland and Ukraine.
(Excerpt) Read more at finance.yahoo.com ...
And Russia will ALWAYS BE at least 10% cheaper.
ALX wrote: Russia is currently building pipelines with China that replaces Europe completely and India is in line. Those two countries are four times as big as Europe. The Middle east is not uniting with Europe/ America and in fact its almost Europe/America alone
The people that you guys are replying to don't understand economics.
They DO understand team jersey colors, though.
They've picked the yellow and blue jersey for this go-around.
No actual facts or economics will sway their "opinion".
If he yells loud enough and belittles the people replying to him enough, the economics will change in his favor.
He's one of the Bigliest clowns on FR.
Why would Russia want rubles? Suspect this is a scheme that purchasers of Russian oil and gas must “purchase” rubles from Russian banks at some fixed ridiculous rate in order to receive the oil and gas.
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Increase in demand increases the price of things.
If people buy more rubles than before, their value increases. Even if it isn’t at a fixed rate, but they buy more at a free market rate, their value increases.
Once the dollar collapses people in the U.S. will barter. They will gradually use salt, sugar, whisky, and bullets as money until money develops the same way it did in history.
Your post is spot on: The only individuals who did not see this coming are Biden and the “gifted talent” supporting him or, really, running his administration. But keep it to OMG: God is not “effing” and God doesn’t eff around.
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