Zermany blinks.
March 30, 20224:22 PM EDT
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Looks like it's Game, Set and Match for your "sanctions", ShizzPantz.
https://www.dw.com/en/germany-says-putin-agreed-to-keep-payments-for-gas-in-euros/a-61310461
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Looks like it's Game, Set and Match for your "sanctions", ShizzPantz.
https://www.dw.com/en/germany-says-putin-agreed-to-keep-payments-for-gas-in-euros/a-61310461
Putin will be happy to get the dollars or euros. There really isn’t a downside for him.
Scholz’ buddy Schröder probably orchestrated that.
Agreements between Germany and Russia have historically been harbingers of wider war.
...except the currency markets aren’t believing this will hold, as the Ruble is almost back to its pre-war levels, and holding.
Maybe Biden can trade them some of his depends to pay for our russian gas?
That’s because Russia needs the cash to buy Chinese junk.
Sanctions will be gone by the End of the Year, and Hunter will be back in Russia giving favors to Russian oligarchs and Putin himself, and daddy will get 10%.
According to the federal government, Putin assures Scholz of gas payments in euros
According to the federal government, US President Vladimir Putin has assured Chancellor Olaf Scholz (SPD) that European companies can continue to pay their bills for Russian gas in euros. In a telephone call on Wednesday, Putin said that gas deliveries would have to be paid for in rubles from April 1, explained government spokesman Steffen Hebestreit. “At the same time, he emphasized in the conversation that nothing would change for the European contractual partners.”
The payments should therefore continue to be transferred exclusively in euros to the Gazprom Bank, which is not affected by sanctions. “The bank then converts the money into rubles,” Hebestreit quoted the Russian head of state as saying. The Kremlin made similar statements after the call.
The Kremlin said the decision should not “lead to a worsening of contract terms for European importers of Russian gas.” Putin justified the conversion from euros or dollars to rubles by saying “that the foreign exchange reserves of the Bank of Russia were frozen by the member states of the European Union in violation of the norms of international law”. This was the EU’s reaction to Russia’s war against Ukraine.
Federal Economics Minister Robert Habeck said on RTL that he was skeptical as to whether Russia would actually continue to accept payments for gas deliveries in euros. It remains to be seen how the Putin government will flesh out its threat in a law on Thursday. “Only then will we know exactly what that means, whether the statements of yesterday and those of today contradict each other or whether it is all just a communicative error.”
The Office of the President previously stated that the requested payments in rubles would not be implemented immediately. The transition should be gradual. The dollar as a global reserve currency has had its day, so payments in the respective national currencies are unavoidable.
Gas delivery and payment are separate processes, Kremlin spokesman Dmitry Peskov said on Wednesday. Putin’s instruction to switch to ruble payments is not yet valid for this Thursday. Putin wants to meet with representatives of the Russian gas giant Gazprom and the central bank on the day to be informed about the current state of affairs.
The announced meeting and the refusal of Western countries to switch to the ruble had sparked fears in Europe that Russia could quickly shut down gas supplies. Peskow, too, had said that if no payment was made, no gas would come ; Russia is not a charity.
Semantics aside, Germany gets to claim it held firm and Russia still gets paid in ruples, thereby boosting demand for the now gold-pegged ruple. Maybe I am mistaken, but I think Russia came out ahead on this deal while Germany got to save face and keep the gas flowing. For now.
Germany: “Sure, we’re behind Biden, we’ll send the Uke-ster’s 6,000 leftover WW1 pointy helmets, but we ain’t gonna freeze or switch to horse drawn carriages for them. We know which way the wind’s blowin’!”
Why would Russia accept dollars or euros when western economies are hell bent on preventing the purchase of anything with dollars or euros by Russia?
Plus let’s not forget the thorny little detail that the United States dollar is technically in default, due to the outright theft of Russia’s forex deposits of $300 billion. If you put $1 million into a bank and the bank, despite having the money, refused to give it back to you-the bank would be in legal default. That’s exactly what’s happening here. This is hardly the first time the federal reserve has at outright stolen a nations foreign reserves. The dollar is totally fiat play money and has no intrinsic value to Russia. Rubles or gold.