Vladimir Putin Wants Europe to Pay for Gas in Rubles

Discussion in 'Political Opinions & Beliefs' started by vis, Mar 23, 2022.

  1. vis

    vis Banned

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    https://www.themoscowtimes.com/2022/03/23/putin-orders-europe-to-pay-rubles-for-russian-gas-a77053
    Very smart move from Putin. Now the European countries that buy gas have to pay in rubles for it. To do that, they have to find somewhere rubles. The only organization which can provide it is Central Bank of Russia, which is currently under sanctions. Looks like West has no other choice as to lift the sanctions, at least against Central Bank of Russia in order that the bank could perform operations on international market. Moreover, this way Russian Bank will get Euro banknotes in Russia which was not possible before due to the sanctions.
     
  2. Durandal

    Durandal Well-Known Member Donor

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    It is an interesting move, certainly.
     
  3. Thedimon

    Thedimon Well-Known Member

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    They might just alter the sanctions to allow the EU to interact with CB of Russia only to buy enough rubles to pay for that gas.
    I seriously doubt this will have any positive impact on Russia. All this move will achieve is make buying Russian energy a royal pain in the neck and encourage everyone to just buy it elsewhere, even at higher cost.
     
  4. Jeannette

    Jeannette Well-Known Member Past Donor

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    The Ruble has now surged in value - and so where's the dollar going? Down, down, down! Thank you Biden. You wanted economic warfare, well you're getting economic warfare and we'll suffer because of it.

    “During the last few weeks, as you know, several Western countries adopted unlawful decisions to freeze Russian assets,” Putin outlined during a government meeting held via video link. “The West has de facto destroyed the credibility of its currencies.”

    Putin argued that the penalties showed it “makes no sense anymore” to sell Russian goods in the US and the EU while receiving payment in dollars or euros. He said that the ruble will be used for the sale of Russian natural gas to, what Moscow considers to be, “hostile” countries.
     
  5. zoom_copter66

    zoom_copter66 Well-Known Member

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    Time will tell....ruble is worthless....Germany had made a deal with UAE for energy.....supposedly....France also is looking into it from UAE.
     
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  6. Thedimon

    Thedimon Well-Known Member

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    The point of sanctions is to make business difficult.
    In a way, what Pootin did here, is impose sanctions against Russia that even the EU was not ready to impose, as this action will speed up the search for alternatives. LNG is going to become the main mode of delivery of the natural gas.
    The whole heating issue in Europe might be completely reconsidered - electricity can be used to produce all of the heat necessary for residents. So, instead of buying gas from Russia, building a few more nuclear power plants could provide a long term solution that kills dependence on natural gas altogether.
     
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  7. Hey Now

    Hey Now Well-Known Member

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    It'll offer the ruble a temporary bump even low ceiling but if Europe is successful in weaning themselves away from this Despot's control of their energy, it's bye bye rub(b)le, hyper inflation riddled Russia and a nuke nation down into Putin's gold toilet.
     
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  8. vis

    vis Banned

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    Nuclear plants will not work for EU as there is a huge lobby against using nuclear power. In the short term, switching from Russian gas to something else is not feasible. As for ruble, it went up by 20% now.
     
    Last edited: Mar 23, 2022
  9. Woogs

    Woogs Well-Known Member

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    I don't see Russia wanting either USD or Euros so lifting sanctions on the Russian central bank still leaves open the question as to what to buy rubles with. Gold?? Yes, Russia will accept gold!

    It's that or else the EU can buy rubles from a third country (China, India) in order to pay for its gas.
     
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  10. Woogs

    Woogs Well-Known Member

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    Should make for interesting talk in Brussels tomorrow LOL.

    Obviously, this new policy of Russia could be adapted to other commodities as well.
     
    Last edited: Mar 23, 2022
  11. Thedimon

    Thedimon Well-Known Member

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    As far as I know, some European countries delays their nuclear power plant closures.
    The lobby to get rid of them might end up being completely eliminated in light of the fact that energy independence is really the matter of national security.
    As for ruble going up 20% today - we are not done yet. :lol:
     
  12. Lil Mike

    Lil Mike Well-Known Member

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    Europe is going to have to buy that gas, so they'll come up with the Rubles. The world financial system is going to look a little bit different after this war than it did before it.
     
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  13. Thedimon

    Thedimon Well-Known Member

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    No, Europeans will just find a way to get gas elsewhere. Current gas pipes can be used to supply gas from LNG terminals.

    Yes, Europeans will probably buy only what they absolutely have to buy and will obtain as much currency as possible from other countries. Again, it looks like Europe will be done with Russian gas in a relatively near future.
     
  14. zoom_copter66

    zoom_copter66 Well-Known Member

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    Yeah...more sanctions tomorrow I'm hearing....300 lawmakers getting labelled for starters....as well as US just labelled Mafialand for warcrimes today. Where's Shoigu these days BTW....I've been hearing he has "heart problems"? Or maybe drinking tea near a 5th floor window?
     
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  15. zoom_copter66

    zoom_copter66 Well-Known Member

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    Gee....what will become of NS2 Nordstream:)....perhaps Putler can stick it up his a$$ ....?
     
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  16. Alwayssa

    Alwayssa Well-Known Member

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    He wants them to pay in Russian currency and not in US dollars.

    And no, it's not a smart move at all. Putin is acting out like a five year old and it's time to put him in "time out."
     
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  17. Alwayssa

    Alwayssa Well-Known Member

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    I don't see the world financial system looking any different after this is all over. The Dollar will still be the dominant international currency. It's the safest currency out there compared to all other currencies. Second, Russia may decide to act more like NK in its financial system, which would mean less foreign direct investment and less job opportunities for the local citizenry. And finally, what will actually happen is a diversification of where natural gas will be coming from. Russia would be limited and other natural gas sources will be developed. But that will take 10 to 20 years before it will be fully understood.
     
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  18. 19Crib

    19Crib Well-Known Member Past Donor

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    All Europe has to do is tell them it’s Euros or nothing. The gas industry is about the only export business running.
     
    Last edited: Mar 24, 2022
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  19. Lil Mike

    Lil Mike Well-Known Member

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    Well I do hope you're right that the financial system and the dollar will ride this out.
     
  20. vis

    vis Banned

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    Why not smart? EU has either to lift the sanctions against Central Bank In Russia to get roubles, or heat the houses with wood. And you know what, the Bank will sell the roubles at the prices that are very convenient for the bank. So yes, it is smart. At least in terms of the anti-sanctions this is the best thing Putin can do.
     
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  21. vis

    vis Banned

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    Of course, it can tell -nothing -then EU will heat to the houses with wood or old newspapers. EU is currently like a drug addict-can not survive without gas.
     
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  22. MJ Davies

    MJ Davies Well-Known Member

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    Absolutely. He seems to be performing like he has options. That's not a good optic at this point. It **might** have worked when the invasion first started but it just looks silly and desperate at this point.
     
  23. vis

    vis Banned

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    Forget about dollar. Chinese currency will be a dominant one. Dollar is not substantiated by anything. In general, US dominance come to an end. Before 1812, when Napoleon was kicked out of Russia there was French dominance and everyone learned French. Later at the begining of 20 century it was German dominance, and everyone learned German. Afterwords - English language ..now it comes to an end. You d better now took Chinese lessons. :lol:
     
  24. Ixan Joben

    Ixan Joben Banned

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    There is such an expression in Russia: these are flowers - and there will be berries later. Yesterday Putin said the following: "we will start with gas, if the partners like it, we will continue." And now imagine if Russia starts selling wheat in rubles. Gas in the structure of Russia's exports occupies only 12%
     
    Last edited: Mar 25, 2022
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  25. Alwayssa

    Alwayssa Well-Known Member

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    The Chinese have been saying that since the 1990s. And to this day, the Yuan is still pegged to the US dollar.
     

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