Posted on 03/31/2022 6:58:11 AM PDT by marshmallow
Last week, the Russian president ordered the Central Bank and government to work out the means for countries designated as 'unfriendly' by Moscow to pay for Russian gas in rubles. The G7 slammed the move and vowed not to pay. However, Berlin, one of the biggest consumers of Russian gas, has since inquired about how such transactions may take place.
Russian President Vladimir Putin has signed a decree regulating gas trade with designated 'unfriendly' states, saying countries wishing to do business with Moscow must open bank accounts in Russian banks, and clarifying that existing contracts will be frozen unless ruble payments are made.
"We are offering contractors from these countries a clear and transparent scheme. To purchase Russian natural gas, they must open ruble accounts in Russian banks. It is from these accounts that payments for gas supplied starting tomorrow, 1 April, will be paid," Putin said, speaking at a meeting on aviation industry matters on Thursday.
Putin stressed that Russia would continue to meet its obligations in supplying gas at volumes and at prices set under existing contracts. However, the need to pay in Russian currency is not up for negotiation, according to the president.
"No one sells anything for free, and we too will not engage in charity. That is, existing contracts [not paid for in rubles] will be stopped," he said. "If such payments [in rubles] are not made, we will consider this a default on obligations by buyers. With all the ensuing consequences," Putin added.
Putin announced on 23 March that Russia would require countries which have introduced sanctions against Russia to pay for their natural gas purchases in rubles. The Russian Central Bank, the government and Gazprom were given one week's time to amend existing contracts into rubles.
Sputnik has obtained the full text of.....
(Excerpt) Read more at sputniknews.com ...
This guy Putin is all over the place. Just yesterday, there was news that he would still not demand payment in Rubles.
See here :
Does he have a deadline for switching to Rubles?
And the Germans laughed at Trump when he warned about dependency on Russia for natural gas. Bet your bottom dollar they wanted him out of the White House. They got what they wanted.
Checkmate.
Will the gas stay on?
None of this would be happening if Trump was still the boss.
That was fake news.
This is the west’s choice. First of all they embargoed Russia and its ability to purchase anything from the west in euros or dollars. And now they want to pay for Russian gas in euros in dollars? Are they stupid or just mentally shut down by their own propaganda? Why would Russia want dollars are useless or euros are useless? Especially when the Federal Reserve outright stole $300 billion from Russia’s forex reserves. What’s stopping them from doing it again from oil revenues? Nothing. That’s why rubles or gold is the only currency that’s going to be acceptable to Russia going forward. Thats what Europe they’re going to pay in whether they accept it or not.
He’s got the upper hand for sure.
The existing contracts are very lucrative, whereas the Germans get their gas for $370 vs the market price of $1350.
If I were Russia, I’d let them default on old deals and demand to conclude new contracts for full market price.
Notice that the article states begins with :" Last week..."
I believe that today they have altered their view, since there was so much resistance to the ruble, to have payment made in Euros
Actually if you only followed what you heard him say he hasn’t changed. The reports coming from “sources” differ. We’ll see what happens. If you are only listening to AP repeaters you’re probably not as well informed as you may think.
Agree. That being said, Russia could still make it work since they Euros and Dollars given to Russian Bank could be liquidated by a more friendly nation as long as it goes to their central bank.
There is a very good reason you don’t try cancel culture on a country that produces and then supplies such a broad array of commodities.
Its fun for our leaders to do it with North Korea,Iran or Venezuela, but these losers did not think this through and decided Ukraine was worth a possible mass starvation event with a guaranteed American recession on top. Idiots
I’d like to see the details, but this may be little more than a face-saving accounting gimmick by Putin.
So long as the transfer by Germany of the specified amount of euros to the bank is considered as legally satisfying the payment obligation to Gazprom under the existing gas contracts, then it doesn’t really matter if Putin requires the Russian bank to convert these euros into rubles through a special account. That conversion is in substance on behalf of the seller, not the buyer, so long as it does not affect the amount and currency of the payment initially transferred as called for under the gas contracts.
The ruble has almost completely recovered to it’s February level. The international financial community has faith in Russia.
It sounds like an accounting gimmick by Germany to save face.
.
“there was news that...”
Someday people will figure out that our wonderful media LIES to us.
Easy way to figure out what’s REALLY going on is to look at the value of the Ruble - which is now close to it’s pre-war levels, after being far lower.
Checkmate, and the US and Europe did it to themselves with their policies. I don’t know who exactly is running the show in the West, but whoever it is, they are making some seriously bad decisions.
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