These guys are dopes.
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 ...
“So now when the ruble weakens futher, the unfriendly countries will have to pay less. What financial idiot. “No, don’t throw us in the ruble patch.”
They have to buy the rubles first.
Study economics. It will edify you.
I'm sure we will see an "analysis" from MSM showing this to be a horrible case of deflation.
“Do you think there is much planting in the Ukraine?”
—
Nope.
https://www.dailywire.com/news/food-prices-are-about-to-get-even-more-exorbitant
LOL. Just like Russia is losing to Ukraine.
When the war started the Rouble fell, but has been slowly coming back up, I would say going long the rouble would be a good play.
How much forex have you traded in your lifetime?
You are absolutely correct.
It is the ability to control the currency that maintained the US so powerful for so many years. Thanks to the 10% guy it is no longer a monopoly.
And China will follow, have no doubt.
These guys are dopes.
“Putin is putting a lot of pressure on European governments to become less dependent on Russian energy.”
That takes a decade or two.
And Russia will ALWAYS BE at least 10% cheaper.
No need to smuggle. Just sell the oil and gas through third parties that aren’t covered by any sanctions.
Long term, this Ukraine conflict and our use of economic warfare will cause Russia and China to move closer together. It will energize the effort with BRICs: https://en.wikipedia.org/wiki/BRIC
Short term, we will inflict far more damage on them but we will also feel this since they are a major global world energy, wheat, fertilizer, titanium (aviation) and platinum (chemical/automotive) supplier.
No country has the Reserve Status of the US Dollar which doesn’t allow them to be so negligent with their currency
“How much forex have you traded in your lifetime?”
Irrelevant.
Europeans will have to purchase Rubles to purchase Russian gas.
The ruble will increase in cost and value.
Or, they can do without the gas. Their choice.
I am quite educated in economics.
For you to think that 3% change is meaningful shows what a clown you are. It's daily range has been 3-4X that for weeks.
Agree...makes no sense.
What short-term damage in Russia? Do you mean the exit of McDonald’s and Victoria’s Secret?
“Also all this nonsense make smuggling of Russian oil, gas and fertilizer extremely lucrative. Suspect Putin has some old KGB buddies who are well experienced and adept at smuggling. No doubt Putin is getting his cut.”
Of course not. All they will need to do is call Xiden and he’ll get his corrupt buddies or Hunter to jump right on that little problem — for, of course, the standard 10% for the “big guy.”
Russia will cut off anyone who doesn’t pay.
And they have pay in rubles.
McFaul is having a public wet dream. What he wants will NEVER HAPPEN.
Did you see the Russian trade balance? With sanctions it is going to improve further. No reason for ruble to deprecate.
The overconfidence is astounding.
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