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clock Created with Sketch. 24/03/22
12:28
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Originally posted by gve
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"Putin just by ordering Europe,and USA to pay for gas now in Rubles. That will provide support for the Ruble, and undermine Europe and its Euro as well as the dollar in the long run. First of all, when Biden freezes all of Russia’s reserves, why would you continue to get paid in dollars that Biden could freeze? That makes no sense. Berlin The decree by Russian President Vladimir Putin that EU states and the USA can only pay their gas bills in rubles could have significant repercussions. Further details on Putin’s plan are not yet known, the implementation should be worked out within a week.
In principle, however, the announcement could indirectly force the West to decide either to circumvent its own sanctions or to boycott Russian gas. For Germany in particular, this would have significant repercussions.
So far, Russian gas suppliers like Gazprom have been paid primarily in dollars. The Russian supplier then has to exchange most of the payment for rubles with the Russian central bank.
Putin now wants the West to pay suppliers in rubles straight away. But there is not enough Russian currency on the international financial markets, writes economist Jens Südekum on Twitter. The only alternative then is to get the rubles directly from the Russian central bank……..
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"First of all, when Biden freezes all of Russia’s reserves, why would you continue to get paid in dollars that Biden could freeze? That makes no sense."- So true; however the contracts are in USD and Euros and not in their equivalents. To demand Roubles would be a breach of contract- so, does Russia halt supplies??
