Putin: hostile countries pay for gas in rubles. A strong announcement
Russian President Vladimir Putin said on Wednesday that gas sales to countries deemed hostile to Moscow should be paid for in rubles, saying the freezing of Russian assets by foreign states has damaged Moscow's confidence in foreign currencies.
As of January 27, about 58% of Russian gas giant Gazprom's natural gas sales to Europe and other countries were in euros. "Russia, of course, will continue to supply natural gas based on the volumes and prices … set in previously concluded contracts," Putin said Wednesday in a televised meeting with top government ministers. "The changes will only affect the payment currency, which will be exchanged for Russian rubles," he said.
In reality it does not change, in practice much, because the Euros paid for gas were then in any case exchanged for Rubles on the international market so that they ended up holding the Ruble thing. However, Russia, an exporter of raw materials, has no problem supporting the ruble as long as exports remain at high levels.
The ruble against the euro strengthened during the day.
Even if we remain far from pre-crisis levels
If ever the Euro reveals all the weakness of the European response in this situation and weakens against the dollar …
It is a pity that, without gas, we cannot increase the industrial production of tiles to send to the USA to rectify the situation.
Of course, someone didn't understand Putin's move. But what are we surprised to do …
Putin orders that gas must now be paid for in rubles. A huge favor.
With the ruble depreciated by 40% in one stroke, energy costs us 40% less (!)
Is he out of his mind?
– Tommaso Monacelli (@monacelt) March 23, 2022
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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/putin-i-paesi-ostili-paghino-il-gas-in-rubli-un-annuncio-forte/ on Wed, 23 Mar 2022 15:37:01 +0000.