On Wednesday, Russian President Vladimir Putin said he wants European countries to pay for Russian gas exports in rubles in response to US-led sanctions that aim to isolate Russia from the global financial system.
“A number of Western countries made illegitimate decisions on the so-called freezing of the Russian assets, effectively drawing a line over reliability of their currencies, undermining the trust for those currencies,” Putin said at a meeting with Russian government officials, according to The Associated Press.
The EU has followed the US in sanctioning Moscow but relies on Russia for about 40% of its natural gas imports. President Biden recently signed an executive order banning Russian energy imports into the US, but Washington’s European allies cannot afford to cut off the Russian supply.
Putin announced that Russia will take “measures” to switch the payment system for natural gas supplied to “unfriendly countries” to the ruble. Russia’s list of “unfriendly countries” includes some EU members, the US, and the UK.
The US and its allies targeted Russia with sanctions prohibiting the Russian central bank from dealing in dollars and euros, although there are significant exemptions carved out for energy deals. But the sanctions could make it difficult for Russia to use dollars it receives for gas payments.
Sourcing rubles could be difficult for Western countries and could potentially violate sanctions. It’s not clear if the sanctions exemptions would apply to energy deals made in rubles. European nations trading in the ruble could shield the Russian currency from crashing further, something the US wouldn’t want.
If petroleum is to be paid in rubles, the demand for rubles will increase which means the value goes up.
And so the value did scarcely had Putin made his announcement.
Does this add more pressure to end the petrodollar?
Such pressure is much more significant than 100 Ukrainian wars in determining the fate of the US Empire.
Unfriendly countries list has been published and eevery country that introduced sanctions is in it. This includes the entire Europe except Serbia, Japan, South Korea, and Singapore, Australia, New Zealand, and several UK, French and US colonies.
This is heavily discussed over at Moon of Alabama. Not being a finance expert, I have to pass on commenting. But the comments over at Moon are worth reading. If they are correct, this screws the idea of Russia’s currency being debased. In other words, another Russian evasion of sanctions. And they haven’t even started counter-sanctioning.
Western B team checkers players are presented with long made plans. Russia and China prepared plans for imperialist sanctions. For example, the US was already having problems with supplying acetylene to its own welders before it pushed the war in Ukraine. Are US oligarchs going to keep Europe’s oligarchs propped up? Can US citizens be squeezed with more austerity?
The US dollar will decline faster than was previously predicted and with it
America’s ability to finance its war machine.
European countries will have to pay dearly for their fealty to the US.
The Russian economy is being destroyed but misery loves company. The bill
for NATO’s expansion to the east is coming due.
Ending the petrodollar is a more humane weapon than use of nuclear weapons.We should end our military adventures,emphasizing protecting our homeland-no more Vietnam war, Ukraine war,Iraqi war,Afghan war. and weapons that don’t work-wasting the lives and sanity of US troops, and our treasure. Create opportunity and work for our citizens, ending the abuse of welfare.End the libbie delusion that we can endlessly absorb the overpopulation caused by irresponsible breeding abroad. Goods should be made to last, and not thrown away. Neuter the banking elite, and bring back a gold standard,not a digital phony money plague. Release Zero point energy, reserving fossil fuel for petrochemicals.The current way we are headed,this world will be as dead as Mars,sooner that we expect. There is reason to believe that Mars was once alive;someone nuked it.It now appears there was a stolen election in the US, and a pack of gangsters at home and abroad have turned Ukraine into a waste land after gorging themselves on ill gotten goods, and are pushing us into the big one.
If the petrodollar comes to a halt — and it looks like that’s where things are going — we’re going to need as much of that “overpopulation” coming here as we can get. It will be back to an economy involving a LOT more physical labor, manufacturing, etc., and we can’t even fill the jobs we’ve got now. Immigration restrictionism never makes sense anyway, but it would be even farther from making sense under such a scenario.
Labor participation rate has dropped by almost 14% since the 1990’s.
We don’t have labor now because the government pays people not to work. Then the government regulates employment. Sets minimum wages that discourage entry level workers especially the young. Green card holders are required to go through hoops and pay fees to work. Efficiency in production is discouraged, requiring more labor than necessary.
A huge number of highly paid jobs exist that create no value. These jobs exist because state institutions’ interference in the free market. The solution is to reduce state authority. Useless and counter productive jobs would be weeded out if free markets are legalised. That labor can be re tasked to production.
More population isn’t the answer and is likely to make the state more powerful. Fixing the corrupt over governing we have should be the first priority.
“The solution is to reduce state authority.”
Exactly.
Including over immigration.
Yes, there is a labor shortage at the low paid end of the spectrum. Yes, fresh blood is good for demographics and genetics. Problem is that the pioneer economy is coming to an end-our aquifers are depleted-no more cheap corn to feed us and our farm animals-world resources are finite,Getting rid of our parasitic,inhumane power elite would help,less wars would help, but the planet can only handle so many. Just look at Mexico city. Electrification is highly questionable-where do we get the electricity from?
End of petro dollar is near…!
Russia doesn’t ‘want.’ Russia ‘demands.’ If certain European nations find this objectionable, they can hold their woke breath and slowly starve as their entire economies die around them.