With the ruble mostly stuck in sanctions limbo and trading around 100 to the dollar in recent days (an improvement from the USDRUB 140 hit on March 8), the Kremlin appears to have found a new way to prop up the Russian currency besides merely central bank interventions: make foreign customers of Russian gas demand it.
During an address to the nation moments ago, Vladimir Putin said that Russia will demand that countries it has labeled “unfriendly” (which includes U.S., U.K., and European Union countries) must pay in rubles for Russian gas, Interfax reported. As a result, Putin ordered the central bank and government in a week’s time to determine the scheme of ruble payments for Russian gas, and also ordered Gazprom to make corresponding changes to gas contracts.
Putin also said that Russia will continue supplying contracted volumes, will only change payment currency.
The Russian leader said it makes no sense to export goods to the U.S. or EU in dollars or euros, according to the news service.
Following Putin’s comments, the Russian ruble strengthened rising 3% at MICEX after indicative prices briefly jumped more than 8% twice; on Bloomberg terminals, the RUB was up 4.9%, though most of its prices are indicative and not tradable. 1M Rub forwards, which do trade on Bloomberg, gained over 4 rubles to ~103.
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How dare he behave like the US?!
“I’ve altered the deal.”
It’s Deplorable.
They could demand gold.
Should.
This scenario is nuclear, but not completely out of the range of possibility:
Putin has decided on the nuclear option when it comes to sanctions.
Europe is running out of diesel, and the US will see continuing higher inflation driven by higher fuel prices. It is hard to believe how much Bidet screwed things up in such a short period of time. I wonder if democrats will ever suffer retribution over this….
No, they won’t.
When its intentional its not a screw up… fify
And it isn’t biden. Look and think deeper.
Look at his cabinet for some clues.
Why do people praise things as if Mr. Alzheimer’s is doing any of this on his own? Even Tucker speaks like thus. Bidet is a puppet…even more so than the typical infestation in the White House.
To protect the jews behind the throne.
They should raise the price to Germany by 40 % in Rubbles first.
I guess it’s implied since the contract was in Euros. Germany will now have to go out and buy 40% more Rubles or however many Rubles should further sanctions push the Ruble down further.
And Italy, which is just as scummy at Germany…oh, yeah, don’t forget the filthy Brits. Fuck them all.
The people in those places are in the same situation we are. Their governments are evil, the elections are fraudulent, and the people have no say in anything.
Should be interesting, other leaders have demanded gold or euros for oil, they ended up dead.
I think this situation will be, different……..
If they could have Arkancided him, they would have done so already.
During the latter part of WW2, Saudi Arabia demanded payment in gold for its oil, given the shaky financial status of the US…
FDR had just stolen tones, so no problem.
Touche’. Billions in Euros chasing Rubles fuques with the value, likely driving it up sharply. This makes European products even more expensive in terms of trade, benefitting China in general and both Russian and Chinese commodity and weapons sales. Same to a lesser extent for the already high USD.
Reminds one of the old Charles Bronson line “Don’t fock with me!”
The weaker Euro makes European products less expensive not more in terms of trade.
Prices paid by Europeans for imports will go up.
Short term there will be a shortage. Then the question becomes what do they do with the excess Dollars they now don’t need? A daisy chain of “fuckery.” The FOREX guys must be excited over this.
This is a game changer. Europeans will realize that real things have value and fiat Euros are essentially worthless.
Oh, I see, you’re an optimist.
We could easily see $150 oil by summer, which, along with massive food inflation will bring the world economy crashing into depression. When it takes most of your paycheck to fill your shopping cart and gas tank, you are not going to be spending much on vacationing, restaurants, or a new cell phone….
I am already seeing $16 lb. meat prices, so $20+ when the grain shortages hit, is not much of a stretch. The housing market is already beginning to crash, as 4.5%+ interest rates are pricing people out of half million dollar median priced homes.
Of course they are going to try to blame this all on Putin, but anyone with half a brain knows Biden owns this 100%.
So anyone find a place to buy physical rubles yet? Their value, backed by hydrocarbons, is going to go up, the dollar backed by unicorn farts and gender pronouns is probably not.
Maybe the FSB and Spetznatz guys coming across the US southern border will bring some with them.
Priced in Euros, for now, and payable only in Rubles, I should have been an accountant
Brilliant move…
Did you get the best part of it?
Right now, at a time of Ruble-weakness, it’s around 100 Rubles per 1 US Dollar or 1 Euro – when Putin and Gazprom do the fixed price conversion of the existing long-term contracts (allegedly currently set at €250-300 per 1000 cbm natural gas.)
Medium-term the Ruble is likely to bounce back/get much stronger, but the natural gas price is now fixed in Rubles, and the Western countries will have to pay through the nose.
[Laughs in Russian.]
If you live in Finland or Germany, better stock up on heavy coats, and long underwear. Next winter may be long and cold, and heat will hard to come by, and very, very expensive…
It might be the same here.
Smart move. Our free ride is coming to an end. The message is: Natural resources have real value; the dollar, not so much.
Energy for Rubles, nudging in on the Energy for Dollars. A way to internationalize the Ruble and allow more Rubles to be printed, exporting inflation of Energy to the rest of the world. Copy Catting the US Oil for Dollars as a way to increase international demand for Rubles.
FOMC chair Jerome Powell spoke to congress stating that more than one reserve currency has been in the past and could be coming now.
China is already in on the game as well, with the Shanghai Gold Exchange and it’s own Oil for Yuan.
As the USD is used less in international trade, inflation is going to continue it’s upward climb here in the US. US interest rates will rise to try and keep demand for US Treasuries up. We are heading for bad times in the US.
https://www.patreon.com/posts/day-petrodollar-64169436
Yes.
Get out of the city while you can.