Contrary to expectations that Vladimir Putin was bluffing about collecting rubles in exchange for Russian energy exports, moments ago a decree signed by the Russian president confirmed that that was not the case.
According to Bloomberg, Putin said he had signed a decree demanding payment in rubles for Russian gas supplies, which is set to begin April 1 as previously reported. According to the decree, while Russia will continue to supply gas at set volumes and prices, it will demand that buyers of gas open accounts in Russian banks, and warned that Moscow can halt gas contracts if buyers don’t pay in rubles; additionally, new proceedings in EUR or USD could be blocked. Pushing what many viewed as a bluff to the edge, Putin said that active contracts will be halted if demands are not met, and explained that the move is meant to increase settlements in national currencies.
Putin’s decree follows an earlier report in the Russian press that Gazprom was studying options of halting gas supplies to Europe amid RUB payment issues. It also follows comments from the Kremlin which suggested that it would look into the idea from lawmakers to ask other nations to pay for a wider range of Russia exports in rubles.
Indicating Russia’s operational readiness to follow through with the plan, Interfax adds that Putin has ordered for special accounts for gas payments to be opened at Gazprombank which will sell gas FX on a Moscow exchange.
In kneejerk response to the news, US nat gas prices spiked – perhaps in anticipation that much of US output will now be LNG-ed over to Europe, potentially creating a US shortage in due course…
… while oil also rose from session lows following the latest SPR release jawboning which has yet to be confirmed by the White House.
Finally, now that it appears the ruble will have to be purchased by western powers, the currency has completed its roundtrip to pre-invasion levels.
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This is just part one. Unfriendly nations will have to pay in Rubles for other commodities as well going forward. The twitter-warrior crowd told me that this would never happen. Of course, if you listen to the keyboard warriors then you’d believe that Moscow had already fallen to the victorious Ukrainian army.
Please show some respect. Whenever referring to the Ukrainian army you MUST preface with an adjective — “courageous”, “brave”, and “fearless” are three favorites these days.
On the same lines as Matt Gates BOLDLY questioning a crooked FBLie cyber head about the crackhead biden laptop… Sooo courageous…
You forgot “heroic” and “valorous” as well.
You forgot ‘plucky.’
ROFL!
Check out the hubris of the Eurotrash, they thought they could pay in Euro for Russian gas and then freeze the payments as part of the sanctions.
Disconnected from reality or what.
They’re at a disadvantage.
They’re insane and stupid, and they assume everyone else is less intelligent than they are.
They are completely disconnected from reality, and are crippled by having never suffered negative consequences from any of their idiotic decisions before.
You just described the entire elite hierarchy in charge of this country.
Yes, it’s a common trait among Western governments.
I wonder if this is just a controlled take down of the US dollar. This may be how FED/IMF breaks the back of US/EURO dept. It perhaps paves the way for an electronic currency. After the long suffering of Hyperinflation and then a debt forgiveness program, the serfs will be begging for a new monetary system where we own nothing but will be happy as drone’s on a death mission. Trillion’s of dollars of debt vanishes into the ether at the blink of an eye. I thought about Rubs being a good investment but something tells me that Biden is an idiot but the TPTB(Whom ever they are that truly are running things)are not quite as stupid, they are crazy like a fox. As we watch the world around us seem to disintegrate morally and financially and all hope seems to be futile….BAM… a new world order for the plebs and they will be all to happy to comply. A calculated risk indeed on their part if true.
This is almost certainly the case. It is a controlled demolition of the west.
Guys and no more ‘z’ s. We have to get this right.
This has the potential to be a disaster for the US and world, especially with the Biden Regime. as anything they do will probably make it worse. This is a real concern to me in Alaska as will I have a thousand-dollar heating bill next winter?
The PotateJoe just released a third of the US Strategic Petroleum Reserve. Which Trump filled and expanded.
Former Vice President Biden is on track to emptying the SPR by the end of Summer.
And
Emptying the SPR will dramatically decrease our military readiness and ability to survive another oil embargo.
Actually all he did was say he would, but then you know politicians and promises.
My guess is that no such thing is going to happen or that there are no such reserves or whatever there may be is inadequate to the demand by a full standard deviation.
Expect current pricing to remain stable or resume their upwards trend.
This is about limiting travel and ending the individual right to free movement incrementally.
“…This is about limiting travel and ending the individual right to free movement incrementally…”
Thus the TSA and in general making air travel a universally nightmarish experience. And also why the interstate highway system has become one gigantic construction site from sea to contaminated sea.
Yep. So are electric cars. Local travel only.
After paying the Lion’s share of NATO for years , I ought to be able hop my happy ass on a plane to any E.U country visa free , and stay as long as I like (but I’d rather not) , U.S. citizens should have one of them (Shengen) passes or whatever the hell they are , and No , I don’t know what I am talking about , I haven’t traveled since the DOD was my travel agent .
On purpose of course! This puppet of the deep state is the worst enemy we face.
Good God, man. I genuinely suck at chess. People think I should be good, but I just miss things that should be obvious. Not great at thinking ahead or predicting just what the hell other people might do.
That said, this was possibly the easiest move to predict in the history of time and every Western leader just missed it or at least that’s the message they want sent out through the MSM. The more I hear idiocy like “Russia will be forced to sell gold” and the sanctions will “Freeze Russia’s Gold” and “the Ruble is doomed” I wonder if they really can be so stupid or if they know, but just have to keep playing the same tune all the way down.
Putin will NOT sell any gold, he will acquire it, in massive amounts. He did not set up a ruble Gold Standard, he set a FLOOR. This restores confidence, but keeps the gold price low for easier acquisition. When they sell oil for gold, which essentially they already are, that’s when the fireworks start. Gold will flow into Russia just as the price continues to rise…and the dollar and euro collapse in a steaming pile of unpayable debt. The ONLY thing that will restore any type of confidence is, you guessed it, Gold.
How stupid or willingly blind do you have to be to not see this? It is not 1992 and the King Dollar is no longer King.
Drud, You could have skipped all the sandbagging about your chess game. It looks to me like you either are or could be a very accomplished master.
A smarter move by Putin would be to dump all the gold and put it into the safe and secure crypto’s… /s
If only we could have known what he intended to do.
Still can’t find a place to buy rubles. Almost like being locked out of a trading deal.
Still there is time to get in before it hits one for one.
Long term devastating for US and western consumers. Short term, this is fucking hilarious.
This is good news for the Progressive new world order/great reset folks. Biden is probably eating ice cream and celebrating. Expect more bantering about buying electric cars and rationing food for the poor people. This is all part of their plan, make no mistake.
What Moar do the 2A worshippers need to give their/our burnt offerings?
Indeed! It is all part of the plan.
When you have a commodity that everyone needs you can not only set the price but also name the form of payment.
The fact that the braintrust in the western nations never learned this truism shows our leaders are a bunch of freakin’, dumb as a rock, morons?
Life is going to get much harder anyway, so let it be for the right reason. I hope the Russians follow through on the Rubles requirement. What a horrible mental/emotional position to be in…to hope for your so-called liberal (Classical) democratic gov’t to fail. I don’t wanna get nuked, but I’ll appropriately deal with a near life altering challenge to life as we knew it for the ‘greater good.’
What’s the profit play? How do I get in on the action?
Simple, by getting out of the USD and all other “Western” currencies.
As Rubles are hard to come by in the West, into commodities. Easiest is probably phyzzAU.
How does one buy rubles? Anyone?
Currency exchanges… Some banks will order them for you as well.
Btc
You could just buy gold.
Putin has just reminded the world of the difference between wealth and money. Wealth is the real deal and much to the chagrin of manipulators (that would include leaders, politicians, bankers, traders, world shapers, and other non-productive ilk) it holds its value and can demand what type of payment is required. Monies, on the other hand, come and go, and get their value only if a seller is willing to accept it for the wealth they offer.
Putin just served notice that he has checked Russia out of the “Fake World Hotel”. Simultaneously he served the notice of eviction to the western nations currently residing there. They will soon be out on the street, hat in hand, for a time. Then begins the worldwide desperate search for natural wealth, energy sources, gold for payments, and maybe even a return to less globalized means of production…. but I run ahead of myself.
No one ever said that losing reserve currency status would be easy. It will be violent in many ways. By kicking the foundations out from under the fake world economic system Putin has taken the first step in returning the world to sanity and reality. Unfortunately, we won’t like it one bit.
If you haven’t stacked any coin yet I can’t think of a better time. No you won’t get rich, but you may preserve the ability to secure the wealth necessary for your future or the future of your progeny. The Comex controlled price will become more irrelevant by the day as it has been manipulated for decades. That control will finally be broken by the emerging economic reality.. Get the other things now to weather the storm that is coming, and pray that some honest markets ( whether exchanges or barter) will ultimately emerge. For the short to intermediate term the only honest markets will be what you have in the way of food stored, food production, ammo, know how, and wisdom.
What will the Western Powers use to purchase rubles? If Russia accepts the West’s fiat currencies, then nothing has changed. I expect the West will need to find some other mechanism to get the necessary rubles. Quickly.
BTW, the 82nd AB is not the answer.
Your post got me thinking–it seems the reason for making ‘unfriendly nations’ pay in Rubles is drive up the price of Rubles. If Germany has to buy Rubles on the open market with Euros, it makes the price of Rubles go up due to demand. So instead of German gas companies trading Euros directly to Gazprom they have to use Euros to buy Rubles on the open currency market first, then they settle the contract. I’m probably oversimplifying things, so someone more familiar with currency markets should chime in as to the actual mechanism that would be used.
He may be a Bad Man but he is their Ban Man. Our Bad Men & Bad Women make deals to sell us out for their own benefit and the corruption isnt limited by party affiliation.
Putin may be playing right into the hands of his enemies. Their goal could be so insidious and yet so simple that it may defy conventional logic. What’s at stake may be the first clue. When they are no longer working towards the welfare of their Country and are willing to lay it all down for what seems to be nothing, be afraid. I think we are all going to be enslaved by this new emerging leviathan of world government in the blink of an eye. The ten Kings who have no Kingdom as of yet comes to mind.
Go Putin! This effing country needs to be taught a serious lesson on economics. Nothing else will teach the educated idiots and even this will fail with some.
Z ’em all.
Let God sort them out.
He is also working to tie the ruble to gold.