Russia Will Only Accept Rubles for Gas Deliveries to Europe
President Vladimir Putin says Russia will only accept payments in rubles for gas deliveries to “unfriendly countries.”
Now if you want gas, you pay with ruble so countries must now keep a ruble reserve. If the currency is further devalued, they hurt themselves. And now Russia can maintain a fixed trading value regardless of currency fluctuations. You devalue the currency, you must now pay more of it, but the equivalent commodity value is fixed.
I said this as soon as the US implemented the sanctions. If a barrel of oil was 1000 Rubles now it is 10,000 Rubles so they bank the 9000 Rubles profit until the sanctions are off. We just multiplied their countries wealth 10 fold! Short term pain, long term gain! Unless the sanctions never get removed.
Well said, every nation has their independent choice to what to receive and what to deliver in which currency. Still now, entire world was trading in USD but now it's changed and it's good like Saudi Arabia decided to export China in Chinese currency, India decided to purchase oil from Russia in Indian Rupee and now Russia wants the same. This is call real independence, like every nation can get opportunity to ameliorate their country's growth.
Putin certainly forces these so-called unfriendly countries to use Russian currency (the ruble) if they want to buy natural gas, crude oil, service, products, and other raw materials from them. In other words, Putin wants these unfriendly countries to work with the Russian economy if they prefer to have rubles. Putin's strategic planning is quite alarming to the western powers because once the oil crisis starts, all nations will urge to buy Russian oil and gas due to lack of oil production, which middle-east can't meet the oil demand of the world. NIce Putin.
