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Russia’s ruble counteroffensive also strengthens the yuan.
Written by Paul Antonopoulos, independent geopolitical analyst
Russian President Vladimir Putin announced on March 23 that natural gas payments from so-called unfriendly countries will be made in rubles from now on. He stressed however that Russia will continue to supply gas to other countries according to the volume and price specified in previously signed contracts. With Western countries making it difficult for Russia to trade in dollars, euros and pounds, there was no choice left but for gas trade to be conducted in rubles – which will not only ultimately benefit Russia in the long run, but also China.
By selling gas, oil and other products in rubles, it limits, or perhaps even entirely rules out the freezing of Gazprom’s accounts, thus protecting this money from Western sanctions. But to attain rubles to make payments to begin with, so-called unfriendly countries will need to sell foreign currency on the stock exchange. In this way, Russia’s revenue will not only be directly from Gazprom, but also from the Russian foreign exchange market. It is hoped that such a measure will lead to a demand in rubles, thus supporting the Russian monetary system.
The biggest issue Russia faces is whether Europe will instead buy energy from elsewhere, even at a higher price. None-the-less, it does express Moscow’s intentions to reciprocate and respond to economic provocations made by the West, especially as it is very likely that this payment policy will lead to an increase in the price of gas in the European market.
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In response to Russia’s military campaign in Ukraine, Western countries have announced large-scale sanctions against the country, mainly in the banking sector and the supply of high-tech products. Moscow calls these measures an economic war and listed 48 countries including the US, Canada, EU member states, the UK, Ukraine, Japan, South Korea, Australia and Singapore as “unfriendly countries.”
In 2021, these hostile countries paid roughly $69 billion for gas from Gazprom, the Russian state-owned company. To make a similar scale of payments this year, countries will have to procure around 6-7 trillion rubles. As Quartz explained, as yet, “most of these ‘hostile nations’ buying Russian energy have few options but to continue their purchases. If the demand for rubles steadily increases as a result, the drastic fall in the currency’s value will halt and even reverse. After Putin made his announcement, the ruble gained 7% against the dollar.”
The outlet also explained that “if Western governments pursue these avenues, the Central Bank of Russia doesn’t have to spend its own dollars and euro reserves to prop up the ruble—which is just as well, since more than half of Russia’s foreign reserves have been frozen by sanctions.”
German experts have already said that technically, paying in rubles is possible but takes time to create some additional mechanisms to facilitate the attainment and payment of rubles. However, the decision of EU countries will not only depend on the technical aspects.
US President Joe Biden will most likely continue to persuade the EU to give up Russian energy sources, even though this is practically impossible despite the American assurances. However, with Europe unable to realistically cut itself from Russian energy in the short and medium term, the American suggestion will only lead to a weakened European economy as they will inevitably pay exorbitant prices for alternative energy sources.
Goldman Sachs chief economist Jan Hatzius has warned, according to FT, that a European ban on Russian energy imports would cause a 2.2% hit to production and trigger a eurozone recession. In addition, UK chancellor Rishi Sunak has been telling colleagues that the hit would be larger and would quickly cause a downturn worth £70 billion, or 3%, of gross domestic product in the UK, given its still-close ties to the continental European economy.
This comes as Russia announced that it will diversify its oil and gas supplies if Western countries completely refuse to import. In preparation for this, Russian companies have been developing new logistics plans. Although Russia will undoubtedly earn less, it will be able to rebuild the oil industry and the wider economy to not be so heavily hinged on the West.
In this way, it will not only be the ruble that benefits, but also the Chinese yuan. After the West froze Russia’s gold and foreign exchange reserves, many experts saw the Chinese yuan as an alternative to the dollar. China’s currency correlates with the dollar exchange rate at 97%, meaning that if the dollar rises against the ruble, then the yuan will also rise. Effectively this means that the yuan is currently almost a full replacement for the dollar.
As Quartz explained, the US and the EU may then have to run ruble exchange payments through a third, intermediary currency such as the yuan. Effectively, the Russian demand for rubles for oil and gas will stabilize the Russian currency whilst also propping up the yuan, thus weakening sanctions.
If you no paying rubels for oil & gas, you have to buy from Novatek!
hear a lot of countries are crying and bitching about maidan color revolution.
#metoo *sniff*
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It´s your fault, basement of a ghost
I see that Langley uses very low iq trolls now. Do you understand what it means when the State demands something? Novatek will start accepting ONLY rubles for gas, the same as Gazprom and every other company will do. No ruble = no gas!
Eh, I explicitly singled out Novatek so west can buy with dollars and Euros. I even ordered Dmitri Peskow to say so.
Novatek it´s what?
You don’t know? Then you smart enough to join Russian Army! Need everyone right now, situation desperate!
You get beautiful holiday in Ukraine or Armenia, honest!
Just answer the question.
When you join army, I might tell ya, k?!?
I really don’t know I’m a imbecile
Why Putin has no fears of the west
The US and a few small European vassals has condemned Russia’s invasion of Ukraine, but it hasn’t bothered Vladimir Putin. There’s a simple reason he’s not scared. Russia is supported by the global majority and has immense natural resources backed up by a robust nuclear deterrent. Russian success in fending off both economic, diplomatic, political and military challenges by a castrated west, will only boost the confidence of its Chinese and Iranian allies. Ukraine is now a devastated ruin with Russian occupying the east. Russian operation in Ukraine has also accelerated the western economic decline as a Eurasian block consolidates with China at the helm. JAI RUS!
Ashok Varma
Will Russia help India build 400 million toilets for Indian who defecate in the streets
Ashok Varma
This whole Ukrainian crisis has fingerprints of zionist entity
Far more Sinister game is being played by zionist entity ,USA and Britain whole game is based on how to hook up stolen offshore gas
With Turkey as hub
By zionist entity with multi prong pincer game
ie supplying Europe via Turkey
This way Europe and Turkey would be dependent on good will of zionist entity ,USA and Britain
Nobody will pay in rubles.
This year all gas and oil will stop coming from Russia in to Europe.
Russian army is in retreat on almost all fronts apart from South.
Rusian military are turning on each other.
Two Russian soldiers have been caught venting about Putin’s “bullshit” war against Ukraine in an intercepted phone call as devastating losses reportedly led one soldier to drive over his colonel with a tank.
“Basically, it’s a shitshow here, I’ll put it that way,” an unnamed soldier near Mykolaiv in southern Ukraine can be heard telling a colleague.
RUSIAN Soldiers are complaining about having Kevlar vests that lack the hard-armor panel, but they are ignored.
“‘Comrade General, damn it, I have this situation,’” he recalled troops telling their leader. “And he just says, ‘Son, be strong,’ and then he fucks off. It’s such trash here… our own plane dropped a bomb on us,” he said.
“They couldn’t even send off the 200s here,” he said, using a Russian military term for dead bodies. “They rode with us for five days.”
“Even in Chechnya, there was nothing like this,” he said, describing the situation as a “madhouse.”
We will take back all territory of Ukraine including Crimea Donetsk and Luhansk and Putin will be killed by his own population.
Viva Ukraine
Death to invaders is inevitable
But but I do everything I can, it’s not even a war!
Do you have some fuel or food, or at least some ammo left over, could use some.
Did you make a video crying about how your skirt wasn’t enough to prove you’re a lady and they made you stay to fight? How’s that working for you?
Dream on asshole.
stupid nazi Idaho hillbilly
btw I’m an idiot who copy-paste cnn bullshit
Russian success and victory very painful for senile nazi hillbilly from Nebraska—seek therapy from lgbt social worker
Death angel
This whole Ukrainian crisis has fingerprints of zionist entity
Far more Sinister game is being played by zionist entity ,USA and Britain whole game is based on how to hook up stolen offshore gas
With Turkey as hub
By zionist entity with multi prong pincer game
ie supplying Europe via Turkey
This way Europe and Turkey would be dependent on good will of zionist entity ,USA and Britain
Current body count is about 1350 Russians vs over 14000 Ukies. Mariupol gone, 12 Ukie brigades in the bag. Who did u say is winning?
The Ruble is sitting at around 102 for 1 USD at the time of writing this.
I was so sad that I could not find a place to buy up the Ruble. The low price was clearly artificial and as such short term. It was, and for a short time longer will be the greatest, easiest way to make huge bank, but no one here is selling any. It’s already rebounded and rising again. Would be double money back in less than 1 month. Such rare opportunities don’t come around often.
the yen at 140 to USD—you amerikants cannot think
Don’t mind them. Their masters’ pedo empire is crumbling and they have gone nuts. Look at this comments section. They copy-paste absurdities 24/24, thinks that every human with half a brain can verify being false.
I’ll believe Russia when they cut off the gas supply. It is a perishable trade, if they don’t ship it, they can’t really stockpile too much of it. They just lose the value of it. Sucks for the EU but they will survive, especially with Spring coming the threat will be much less.
Anyway, if you are in a place where you have liberty to invest… $TELL is building the LNG port to replace 1/3 of the gas that EU gets from Russia with American gas.
I ordered Dmitri Peskow to tell, that Novatek is not included in this order.
Hue hue, I know that west won’t buy in rubels.
I know that west won’t buy in rubels but in gold
It’s natural gas not gasoline. Most of it goes in a pipeline not containers. It’s not going bad. American gas? Lol
Yeah, nat gas or gas… that is what I am talking about. LNG is liquified natural gas, they compress the methane to a liquid so that it can be sent by ship instead of as a gas through a pipeline. That company is building a really big port that can replace a huge portion of the Natural Gas that the EU imports from Russia.
There are not enough ships, nor facilities to process that amount needed on both sides, facilities take years to build, you also lack receiving tanks, you need a huge investment and the west is broke, so I guess the FED will have to emit another trillion to solve these issues in the next couple of years, what are you going onto do in the next six months, are you going to commit suicide? GO FOR IT, six months like this and it will take Germany 10 years to recuperate, please please do not buy Russian gas or petroleum and it’s derivatives, I want to see Europe dead 😂
Another ignoramus shows his ignorance.
you arkansas hillbillies more stupid today than a century ago
Closer to one tenth than one third pal. And heavy industry needs the gas regardless of the season. Dream on.
Just how did these westerners that act so bright failed to foresee this? is it stupidity or hubris? I suspect they think everyone else is stupid and can’t read between the lines, but Putin has always proven them wrong. Europeans better learn to participate in fair trade and pay gas in Rubles or shred their economy, no other way around it.
Straight up!
Simon Ndiritu
This whole Ukrainian crisis has fingerprints of zionist entity
Far more Sinister game is being played by zionist entity ,USA and Britain whole game is based on how to hook up stolen offshore gas
With Turkey as hub
By zionist entity with multi prong pincer game
ie supplying Europe via Turkey
This way Europe and Turkey would be dependent on good will of zionist entity ,USA and Britain
Biden has told US troops they are going to Ukraine
Eh, stop that! I can barely replace losses in Ukraine already and Armenia gets screwed over too now! How I’m supposed to cope with all that shit right now?!?
https://twitter.com/FordFischer/status/1507391947622817793
Barely can fight off brothers and sisters already in this failed invasion. How to fight off even more?
ha, yes with nuclear weapons, you see, I’m talking to myself again
As predicted a few days ago, when Russia faces though times, solutions will start showing up to the Russian leadership. Oil for Rubbles is a perfect example.
Third World War can end the human race, hence human and non human entities are interested in the outcome.
Russia is on the winning side. Russia and China will win this. Western countries will be on the losing side.
A few decades ago, China got the idea not to follow IMF or World Bank Policies. Today the Chinese economy is larger than that of the USA
China helped Russia and many countries in Africa, Latin America etc to free themselves from the economic and mental slavery run by Western intelligence agencies.
There is no going back. What has been passed as judgement spiritually will show up in the real world. The Western intelligence agencies will face Nuremberg type trials for biological weapons, mass murders, crashing of planes and poisoning innocent people in different countries including in the USA and Britain (they kill their own citizens in secret)
This will all become global knowledge when the intelligence agents are tried convicted and hung.
This is the future. Watch those cowards cry like children and beg for their lives!!!!
I think you are watching Russian propaganda.
Gazprom shares collapsed after Europe refused to pay in rubles for gas – The Moscow Times.
The “national treasure” of the Russian Federation has fallen in price by 735 billion rubles per day.
And Chinese Government order.
Chinese concern Sinopec suspends investment projects in #Russia worth $500 million
This is done on the recommendation of the #Chinese government, reports Reuters.
Sinopec is one of the largest energy and chemical concerns in #Asia.
Hey boys those who are in Russia now run from Russia because Russian government will colapse and there’s a huge chance of revolution in Russia and after Democracy in Russia is inevitable.
Russian army has just been downgrade to 5 level and Ukraine army upgraded to 19 level.
Everything is just because of Putin
He just destroyed Russia completely.
We will take back all Ukraine territory including Crimea.
Putin just destroyed the entire future of Russia with this war.Chinese concern Sinopec suspends investment projects in #Russia worth $500 million
This is done on the recommendation of the #Chinese government, reports Reuters.
Sinopec is one of the largest energy and chemical concerns in #Asia.
You believe your own Western propaganda.
You see short time changes as long term outcomes. Ou are wrong. I am right
It takes time. With time you will see everything for yourself.
Democracy, lmao. That’s the freakshow buzzword.
you stupid amerikants cannot think
I think you are watching western propaganda.
Sadly very true. 90% of Americans have no idea what the government does. People actually believe “they hate us for our freedom ” Bush told us that. I believed it at the time, too. It’s horrible, I don’t wish to be punished for these scumbags actions. I wouldn’t blink if they were all rounded up and tried for crimes against humanity.
The best thing USA ever did for my country was to exclude us from their markets when we told them their nuclear warships are no longer allowed in our ports. US – NZ relations froze back in the late 80’s and while there was a slight downturn at that time it’s protected us from all the great crashes of the US market ever since, especially the 2008 financial disaster.
Sadly our financial stability means many US investors came looking post 2008 so we have more of their greedy hands in our economy now. But still, they aren’t our biggest market, ie China, and we will get by ok when the USD crashes.
the Rule is up against the dollar today,if the Europeans don’t pay in rubles they will default,that would give Russia the reason to turn the gas tap of,result European industry totally trashed
Gazprom shares collapsed after Europe refused to pay in rubles for gas – The Moscow Times.
The “national treasure” of the Russian Federation has fallen in price by 735 billion rubles per day.
And Chinese Government order.
Chinese concern Sinopec suspends investment projects in #Russia worth $500 million
This is done on the recommendation of the #Chinese government, reports Reuters.
Sinopec is one of the largest energy and chemical concerns in #Asia.
Hey boys those who are in Russia now run from Russia because Russian government will colapse and there’s a huge chance of revolution in Russia and after Democracy in Russia is inevitable.
Russian army has just been downgrade to 5 level and Ukraine army upgraded to 19 level.
Everything is just because of Putin
He just destroyed Russia completely.
We will take back all Ukraine territory including Crimea.
Putin just destroyed the entire future of Russia with this war.
You are allowed to have wishful thinking.
The chances of a revolution are higher in the USA than in Russia !!!
amerikant lgbt—you consume too much CIA sperm. your desperate cia comedy always falls flat…lol
easy everyone I’m just kidding, I just copy-pasted all that UK bullshit
Russian victory and success very painful for traumatized lgbt arkansas hillbilly
I would not have expected an actual Canadian to call themselves that. Sounds like a troll straight away. Let me guess, he was every bad stereotype in one?
I bet the Germans will be happy to pay four times more for American LPG,not! this is what its about no Nordstream 2 America fills the gap with their overpriced gas,European leaders are stupid cowards,they will get riots on the streets before long.
The french revolution started over bread, so I can see gas prices being just as sensitive for the people of the EU.
people of the EU are just cowards with no dignity, they submit to whatever pedo biden says
amerinkants and ukrop nazis cry
My sanctions. No american junk cars and any american brand products. No US movies and music. No US military within the reach of myself and my friends. They can get some beating. Same goes for the Banderistas, the Baltic trash, Poles and western Germans. From an Eastern European country, with “love”. You all are unwelcome and will be treated in this way. Come at your own peril.
Occupy Bacon, buy rubles,
Hola, Jorgito. The first I leave for you, put it on your tacos or a quesadilla, I do not eat sh..t. The second I do need yet. Although they already do seem more valuable than pesos or other trash you pay with.
Russia needs to go one step further.
For Sale… Barley used, one owner since 1945.. your chance to own two of natures wonders, the Kuril Islands. Would make for a wonderful tourist destination or major naval base!
Bids being accepted now, all payments mus be made in Rubles. Buyer is responsible for dealing with the anger of Japan. Do not miss your chance…. China may be in the lead but you can snatch this opportunity from them if you are willing to get around those pesky sanctions.
pay or freeze—no economies in Europe without Russian gas
soon food will be triple—Russian fertilizer, wheat now requires payment substantial export tax—thank you morons
Really a very smart move. I am pretty sure that the currency exchange rate available for settlements will find itself a way to be at the previously agreed upon real value of exchange (before the latest attempt at artificial market manipulation, vis a vis Ukraine sanctions).
I guess the cost of going through the available currency exchange mechanisms is sort of an idiot tax.
Pretty smart move. I like it.
there is no such concept as real value
maybe he’s sucking dicks for a living, since Justin froze his bank account.
Remember Saddam Hussein ? He annunced he whould sell oil in Euros.. After that he have been obliterated…Selling oil in a currency different from USD is basically a declaration of war: because the dollar used as a reserve world currency supports the abnormal super inflated US economy. A dollar is a debt contract. If it returns home it will trigger a big inflation and consequently a painly economic contraction. Us knows this very well!!
Brilliant move by Putin.
Dropped an Economic bomb.