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Putin wants 'unfriendly countries' to pay rubles for gas

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The European Union is reliant on Russia for 40% of the natural gas it needs to generate electricity, heat homes and supply industry

The EU is wedded at the hip to Russian gas at this point.

The point is not so much to support the ruble as it is to move the world away from USD.

Gas in rubles and oil in Chinese Yuan (The Saudis are already negotiating this)

USD was supposed to be a "safe asset", the world realized that all changed when Russia's USD $300 billion reserves were stolen by US bankers.

5 ( +22 / -17 )

haha, Putin thinks he’s so smart

newsflash - he ain’t !

European countries have now realised that they need to become less reliant on Russia for their energy needs.

They will wean themselves off Russian oil & natural gas, & start developing alternative sources of energy.

the Ruble has indeed become rubble.

His days are numbered

-2 ( +18 / -20 )

Demanding payment in rubles is a curious and probably ultimately ineffective approach to attempting an end run around Western financial sanctions,’’ said Eswar Prasad, a professor of trade policy at Cornell University. “Rubles are certainly easier to come by now that the currency is collapsing. But exchanging other currencies for rubles will be quite difficult given the widespread financial sanctions imposed on Russia."

A strange comment, considering that it's been common knowledge for several years now that Russia, China and others have been working to de-dollarize their economies.

11 ( +18 / -7 )

It seems Putin worries a lot so many countries would not use/pay rubbles in the future. That is a sanction.

3 ( +7 / -4 )

Well there is lots of oil and the US and the Arab countries and plus solar and other new ways such as electric cars.......uhhhh...........Russian government is no way in a negotiating power at this time as there economy is a real shambles over Putin's love for bloodshed.

-2 ( +8 / -10 )

A strange comment, considering that it's been common knowledge for several years now that Russia, China and others have been working to de-dollarize their economies.

Not so strange. What company wants to be paid in Rubles outside of Russia? Keep in mind that with few exceptions national governments don't engage in foreign trade. Companies do. How many companies want to buy Rubles they can only use to buy things from Russia? The value of the US Dollar in FOREX is that it is universally accepted and it's a stable store of value, two things the Ruble isn't. Same for the Renminbi. China gave up on trying to form their own competitor to SWIFT. CIPS was once envisioned as a Chinese version of SWIFT but after the 2015 bank crisis in China it was restricted to clearing only cross border trade in Renminbi and is not allowed to handle any large capital transactions. Renminbi accounts for under 4 1/2% of global FOREX. The US Dollar is used for 88% of FOREX, so yes Russia is more or less urinating into a very stiff wind telling customers for their products they can only pay in Rubles. Russia needs Dollars and Euros to buy things because sellers, meaning private companies and international corporations even and maybe especially Chinese corporations don't want to be paid for their products in something as valueless as the Russian Ruble.

4 ( +9 / -5 )

USD was supposed to be a "safe asset",

You dont seem to realize that forcing creditors to accept the ruble instead of, say, the USD is a punishment. Credit-rating agencies are calling the ruble-repayment scenario an effective default.

Russia, China and others have been working to de-dollarize their economies.

And how has that been going? LOL.

-4 ( +6 / -10 )

Smart move Putin. But way too late.

-4 ( +4 / -8 )

Stalin's slogan used to be "Socialism in One Country" so now the world must put Putin firmly back in his nasty Kremlin matryoshka to show the Russians that "Putinism in one country" is the ramshackle bed of rubles they have made for themselves and will have to lie in it until they toss him out, lock him up in Siberia and throw away the key.

2 ( +7 / -5 )

Russia, China and others have been working to de-dollarize their economies.

And how has that been going? LOL.

It's all LOLs until the axe falls.

The de-dollarization of the global economy is essentially a sure-thing. It always has been, since historically all such currencies eventually falter. But the process has been accelerated by the way the US so flagrantly uses the dollarized economy as a weapon to force other nations to act in a certain way. If your bank decided to tell you what you could or could not buy, and told you to vote and behave a certain way or they would keep all your funds, you would find a new bank as soon as you could.

When the dollar does lose its status as a global currency, it will lose the main pillar of its support and crash. This is blindingly obvious. And it's probably a good thing, even for Americans. The global dollar has enabled decades of wars around the globe and horrible financial policy at home. Putin and Xi will take American down with their own countries, and probably believe that they will bounce back faster afterwards - leaving the divided and decadent Americans to deal with their own wreckage.

2 ( +8 / -6 )

If the EU doesn't want Russian gas, the Russians can always sell it to China too

3 ( +8 / -5 )

The pirate dollar continues to decline..

Huh? USDX is up around 7% over the past year.

1 ( +6 / -5 )

That’s a good deal with cheap rubles. He could also accept crypto currency.

-8 ( +0 / -8 )

USDX is up around 7% over the past year.

It's not so much going up as sinking slower than other currencies. People don't know where else to put their money, but eventually fear of the sinking dollar will force them to find an alternative safe harbor.

-2 ( +6 / -8 )

very nice move RUSSIA!

5 ( +10 / -5 )

I am more interested in what russia is going to do to FINANCE the re-building of Ukraine when this BS of a war is over!!

And hopefully now Europe will more actively wean itself off russian gas!

0 ( +7 / -7 )

Pres. Putin must be bonkers if he thinks that the exchange will be in the Ruble's favor now. He's trying to barter from a position of weakness, and he has only himself to blame.

Business is war.

0 ( +7 / -7 )

Very wise.

-1 ( +6 / -7 )

Dogecoin?

0 ( +0 / -0 )

I am more interested in what russia is going to do to FINANCE the re-building of Ukraine when this BS of a war is over!!

Don't worry, hundreds of American and European companies will be there fighting each other to get contract to rebuild

6 ( +6 / -0 )

Putin is a Fool!

0 ( +7 / -7 )

If the EU doesn't want Russian gas, the Russians can always sell it to China too

Shipments of gas on contract from the US gulf coast to China are being diverted to the EU. China has enough gas on hand so it is allowing shipments intended for China to be sent instead to the EU. The price in the EU is also better than the price being paid by China so some arbitrage is going on here but nonetheless China doesn't need all the US sourced gas it already has on long term contract, freeing more for the EU. And before you ask, US LNG terminals are fully booked and operating at capacity. US suppliers would have to add more terminal capacity to meet Europe's demand. That might take a couple of years to build in the economic analyses these companies are certainly doing makes a good business case for added capacity.

3 ( +5 / -2 )

And hopefully now Europe will more actively wean itself off russian gas!https://www.hartenergy.com/exclusives/german-firms-sign-deals-uae-berlin-seeks-alternative-energy-supplies-199328

The Germans are.

https://www.jwnenergy.com/article/2022/3/21/germany-opens-door-to-qatar-natural-gas-in-pivot-f/

https://imastudies.com/Articles/Article/which-flng-and-fsru-projects-are-likely--to-clear-the-investment-hurdle-500039

https://jpt.spe.org/kfw-gasunie-sign-mou-to-build-german-lng-terminal

https://www.al-monitor.com/originals/2022/03/germany-fast-track-gas-terminals-part-qatar-deal

1 ( +3 / -2 )

Don't worry, hundreds of American and European companies will be there fighting each other to get contract to rebuild

No doubt, THATS why Zelinski had that speech for Japan, to start lining up funds for rebuilding!

1 ( +3 / -2 )

The de-dollarization of the global economy is essentially a sure-thing.

I have been hearing that longer than you have probably been alive. I have books in my book case proving, proving, Japan would eclipse the US as the worlds No 1 economy and the world would switch from the Dollar to the Yen for trade while the US would rapidly fade into insignificance. Some even darkly predicted a big war between the US and Japan that Japan could win. Sounds crazy now but not in the 1980s when this tripe was written. Then it was maybe fifteen years ago the talk was the BRIC, Brazil Russia India and China economies and their currencies overtaking the US and the Dollar. How much FOREX is conducted in any of these currencies? The combined GDPs of all four of those nations fall just short of the US GDP and none have especially stable economies. China is at its peak today, right this minute, and it doesn't get better. As it's population enters decades of sharp decline, so will its economy. The other three are unstable third world nations. But dream on. Don't let me burst your bubble. All my life I have been hearing the US was in decline but it isn't. The US economy is amazingly resilient probably because it is a very large unified internal market and it might surprise you but 80% of what we buy in the US is made in the US. The US is not terribly trade dependent and even when it has a downturn the demand for food, housing and transportation for 330 million people is an irresistible economic force.

1 ( +5 / -4 )

I have been hearing that longer than you have probably been alive..... All my life I have been hearing the US was in decline but it isn't. 

People said the same about inflation until recently. The dollar decline is as inevitable as empire collapse. A natural part of the historical life cycle. But don't let me burst your bubble:)

Meanwhile, I don't know how anyone can claim the US is not in decline. It is shockingly so - not at all the same country it once was.

2 ( +7 / -5 )

The de-dollarization of the global economy is essentially a sure-thing. 

A currency does not have to be perfect to act as the world's currency - it just must be better than the alternatives. The Euro suffers from the instability of the EU itself. The yuan disqualifies itself not only due to the instability of the Chinese economy but the opaque, capricious nature of Zhongnanhai. In fact, the Chinese likely do not want a devaluation of the dollar, considering how many billions they have socked away (even they do not dare convert their foreign exchange holdings - virtually all dollars - to the yuan).

Yes, The de-dollarization of the global economy is essentially a sure-thing, but not for a very, very long time.

0 ( +3 / -3 )

it was expected.

western countires/USA action.

sanctions,cutting off from swift,freezing russian assets abroad.

russian reaction.

pay for oil and gas in RUB now.later on possibly for nickel.wolfram,uranium etc etc etc wheat?

if have no russian currency ready bad luck-russians will sell own production to others/BRICS and counties did not impose sanctions against Russia and did not bow to US pressure/.

as simple as is.

as Biden said-freedom comes at costs.so yes be ready to pay freedom costs or change cars for horses.

one control question-did anyone expected that Russia will do NOTHING just sit and get bullied without any consequences?

so he you are.

4 ( +7 / -3 )

What's next, Putin?

2 ( +3 / -1 )

Anyway, he’s a good strategist and chess player , while the West is not. What happens next? The sanctions have to be undermined to pay him in roubles. Then next? Everyone searches for other suppliers and gets delivered from other countries in midterm. Then what? Their resources end more quickly, while Russia has kept theirs. And then comes the checkmate, everyone has to crouch on knees for the last Russian energy resources to keep everything running. Then you will either become their slaves too or pay the hundredfold of what you now ‘save’ by boycotting. Could you follow? Better, if yes…

-3 ( +2 / -5 )

Putin will eventually bring the Europeans to their knees. Aside from energy, not many are worrying about grains from Russia and Ukraine, in a few months they will

2 ( +6 / -4 )

Well there is lots of oil and the US and the Arab countries

The Arab countries which are ignoring US and not picking up the phone?? Bwa ha ha.

2 ( +4 / -2 )

One thing is for sure: Russia has locked itself out of the Western financial markets for a very long time. This is worse than the West's sanctions, which can be circumvented: no Western financial entity will for decades have any desire to deal with Russia.

-1 ( +3 / -4 )

Russian gas is the cheapest for Europe, they could buy Qatar or US gas but it will hurt their economies so eventually they will want to revert back to Russian supplies.

The sanctions that have smashed the value of the Ruble are now helping Russia. Every percentage increase in the Ruble from now on will be cash in the Russian coffers.

0 ( +4 / -4 )

Masterful. Once the lights start going out across Western Europe they will have to find a way to pay in roubles.

2 ( +6 / -4 )

It doesn't matter, in a few days there will be a "Russia" chemical attack and we will be in WW3.

We know this because NATO countries now meeting are saying that a chemical attack would be the red line that if Russia crossed would get NATO involved.

Now we know now that everytime something like this said suddenly "Russia" does it.

Boy it would really help Ukraine if *Russia" used chemical weapons, nudge nudge, wink wink.!

2 ( +5 / -3 )

Russian gas is the cheapest for Europe, they could buy Qatar or US gas but it will hurt their economies so eventually they will want to revert back to Russian supplies.

Well from the USA would require a lot of ships as no pipeline exists.

From the middle East is possible as 2 possible lines exist both actually going to Turkey and there are ones going from Turkey into parts of Europe.

I don't know the full details but I don't think anything is direct and some connections would be needed and possibly a compressor station added but one line goes through Syria so that would be a line that may suddenly be "unavailable or damaged".

It is not like they can just divert the gas. Compressor stations are needed at certain intervals, and already the gas is for Turkey so a higher volume would be needed.

0 ( +2 / -2 )

Antiquesaving....

They ship the gas on massive gas tanker ships. Adding cost to already more expensive gas.

4 ( +4 / -0 )

Back in the USSR days you could get a ton of Rubles for a few dollars on the black market. So now Putin is going back to Rubles, which will likely be worth as much astray were in the old black market days. But this aside, I cannot get over the peevishness of this guy. Consider: Putin is responsible for thousands of unnecessary deaths in Ukraine for absolutely no reason. And all he cares about is that he feels slighted.

1 ( +3 / -2 )

Interesting move... Not totally sure if it will work.

0 ( +0 / -0 )

The de-dollarization of the global economy is essentially a sure-thing.

I have been hearing that longer than you have probably been alive. I have books in my book case proving, proving, Japan would eclipse the US as the worlds No 1 economy 

You’re misreading. The DeDollarization is happening. It is not a prediction or an opinion. There is data based on transactions.

You’re reading it as other currencies will “replace” the dollar which is not the point the poster made.

1 ( +2 / -1 )

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