This shows Putin got the costs of aggression wrong

[paxmao]

This is 5 hours ago:

Russia will force companies to sell 80% of their foreign currency earnings - in other words buy rubles - Finance Ministry announces

This means that Putin is forcing Russian companies to buy rubles to avoid a free fall. This is normally done by central banks when their currency is under attack - the problem being is that when you need all your treasury to keep the invasion running, you cannot protect your currency. I wonder if the Russian oligarchs are having second thoughts on supporting this guy any longer?

https://twitter.com/JakeCordell/status/1498191397245042690

EDITED to add: I just got this from my broker

Summary of key points:
MOEX will remain closed on 28 Feb 2022.
All MOEX products will be available only for closing (position reducing) transactions.
Non-residents of Russia are blocked from selling securities on MOEX per Central Bank of Russia regulation.
IBKR will stop supporting GTC/GTD orders for MOEX products and will cancel existing GTC/GTD’s.
Reminder that RU products outside of Russia may be also impacted by short notice regulations/changes.

[1714800165]

1714800165

[pinggoki]

I guess their rights as a free enterprise in a former communist country only lasts for as long as Russia is experiencing peace, when will people learn that together as the masses we have the power prevent this kind of events from happening and having to save lives in an unnecessary death through war. The only good thing about this solution of Kremlin is that it's a temporary fix to their problem.

[Jating]

The Russian oligarchs has no choice if I'm not mistaken. So they should follow Putin no matter what because they know the consequences of going against him specially right now that he is flexing his muscle. I know it's going to be a hard decision for them, but you have to think, where do this oligarchs get their money from? what is their sources? Yeah they have been plundering Russia more many years now with Putin's backing them up. So they have to support him right now in his war.

[avikz]

Russian government will face a heavy consequence for the war. EU has already announced to cut Russia off from the Swify network, crase all assets of Russian central bank that is help with ECB, ban Russia Oligarchs from carrying out businesses in EU.

Putin has gone mad and Russian common people will pay the price  a lot of foreign companies will leave Russia for good. The consequence will be severe for Russia.

[hyudien]

Russian government will face a heavy consequence for the war. EU has already announced to cut Russia off from the Swify network, crase all assets of Russian central bank that is help with ECB, ban Russia Oligarchs from carrying out businesses in EU.

Putin has gone mad and Russian common people will pay the price  a lot of foreign companies will leave Russia for good. The consequence will be severe for Russia.

But on the other hand, Russian elites laugh at the sanctions, which can actually make it easier for them to move freely using cryptocurrencies. they were cut off from Swify and other sanctions followed for Russia actions. However, there are positive points for Russia to use Cryptocurrencies as a means of payment and transactions without the need for capitalist intervention, both Russian banks blocked by Francis, UK, and several local banks which are currently closed after the Russian invasion.

Here too, the digital yuan is ready to be a back-up for Russia in carrying out future economic movements and is ready to encourage Russia to continue fighting NATO countries that try to criticize Russia's actions. For one thing, the mainstream media can distort the facts, because we don't really know what's really going on between Russia and Ukraine. There is even video footage engineered by the President of Ukraine and the BBC to carry out propaganda.

Russian media is also closed by Facebook, as a sanction, criticism of NATO countries also does not stop in the name of humanity. I wonder if this context extends to Palestine, where Israel is still allowed by the UN to carry out its heinous acts. If it is true that NATO and UN members want to stop the invasion, they should apologize to the 2x24 media that the US foster child, Israel, should take precedence over criticizing Russia's actions. Where does the actual reaction take place? Or just the politics of diversion of issues? fry Russia, then put humanity first in Palestine just sinking?

[paxmao]

Russian government will face a heavy consequence for the war. EU has already announced to cut Russia off from the Swify network, crase all assets of Russian central bank that is help with ECB, ban Russia Oligarchs from carrying out businesses in EU.

Putin has gone mad and Russian common people will pay the price  a lot of foreign companies will leave Russia for good. The consequence will be severe for Russia.

But on the other hand, Russian elites laugh at the sanctions, which can actually make it easier for them to move freely using cryptocurrencies. they were cut off from Swify and other sanctions followed for Russia actions. However, there are positive points for Russia to use Cryptocurrencies as a means of payment and transactions without the need for capitalist intervention, both Russian banks blocked by Francis, UK, and several local banks which are currently closed after the Russian invasion.

Here too, the digital yuan is ready to be a back-up for Russia in carrying out future economic movements and is ready to encourage Russia to continue fighting NATO countries that try to criticize Russia's actions. For one thing, the mainstream media can distort the facts, because we don't really know what's really going on between Russia and Ukraine. There is even video footage engineered by the President of Ukraine and the BBC to carry out propaganda.

Russian media is also closed by Facebook, as a sanction, criticism of NATO countries also does not stop in the name of humanity. I wonder if this context extends to Palestine, where Israel is still allowed by the UN to carry out its heinous acts. If it is true that NATO and UN members want to stop the invasion, they should apologize to the 2x24 media that the US foster child, Israel, should take precedence over criticizing Russia's actions. Where does the actual reaction take place? Or just the politics of diversion of issues? fry Russia, then put humanity first in Palestine just sinking?

So, the Oligarchs are laughing at having to buy the marvellous rubles with their weak and poor USD and Euros? R u sure?
So Putin and friends are just going to use bitcoin and bypass all the modern world banking system?
An lastly, he and his friends are counting on China helping them... for free? Have you seen China do any favours to anyone for free?

Nope, propaganda and social media can say whatever, but the markets put their money only where there's something to win and that is not the ruble.

[Hydrogen]

Russia will force companies to sell 80% of their foreign currency earnings - in other words buy rubles - Finance Ministry announces

We have reports on russia's stock market taking hits:

Russia's Stock Market Won't Open Monday

Russia's central bank said Monday that the Moscow Exchange wouldn't open for stock trading, the latest move to contain the financial fallout from President Vladimir Putin’s decision to invade Ukraine.

It also said derivatives markets would remain closed. The central bank added that the operating hours of the exchange would be announced Tuesday morning.

Russia's financial system has been rocked in recent days by an onslaught of Western sanctions. The Russian ruble plunged to a record low in the European morning. The MOEX benchmark for Russian stocks slid last week. Before its afternoon decision, the Bank of Russia delayed trading in other financial markets.

https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-02-28/card/kLVgZhp5euuV1BfDlhb1

It is hard to find known sources, who are willing to stake their reputations on publishing some of the other claims being made on russian's economy however.

This appears to be a good test for the "devaluing currency is good for exports" school of economic thought.

[bittraffic]

Isnt that sanctioning USD too? These oligarchs prefer to used USD for ease of transactions.

Russia is cut of from Swift and the oligarchs will be affected soon because they are the ones using the bank transactions from other countries. Which if these oligarchs are tracked they will also be sanctioned with frozen bank accounts. Oligarchs with frozen bank account is worse.

This war is getting crazy they better be just buying BTC instead, if they are going to make transaction censored proof.

[stadus]

Russian government will face a heavy consequence for the war. EU has already announced to cut Russia off from the Swify network, crase all assets of Russian central bank that is help with ECB, ban Russia Oligarchs from carrying out businesses in EU.

Putin has gone mad and Russian common people will pay the price  a lot of foreign companies will leave Russia for good. The consequence will be severe for Russia.

The aftermath of this war will bring out a lifelong effect to the people in Russia, and this is all because of Putin who was totally driven with anger and wrong disposition this time. And with this latest update: The Russian finance ministry and the central bank plan to order domestic exporting companies to sell 80% of their foreign exchange revenues from Feb. 28, they both said in a statement on Monday. This may not be the last resort of Putin, the worst is yet to come. I guess this will force the economy of Russia to shut down in the end.:  https://economictimes.indiatimes.com/markets/stocks/news/russian-finmin-central-bank-to-order-exporters-to-sell-80-of-forex-revenues/articleshow/89889767.cms

[amishmanish]

Its quite childlike of us to debate about whether Putin knows the cost of aggression or not. Here's a former KGB agent who has served as the head of state for one of the most powerful and unpredictable states of the world. That too in a time of falling from glory. That man definitely knows what he wants to do. Right now, it was bullying Zelinsky into giving up on his ambitions to make Ukraine join NATO. Who thinks this wouldn't hurt the ego?

This war is a powerful man's reaction to being miffed by a smaller nation. That too in the belief that they don't want NATO at their doorstep. War is terrible but I do hope that world's people and twitterati would have the same reaction for all the other wars that have been inflicted by the so-called "democracies" for the last over two decades.

Its amazing how the cold war perceptions still live on after three decades.

[hatshepsut93]

Its quite childlike of us to debate about whether Putin knows the cost of aggression or not. Here's a former KGB agent who has served as the head of state for one of the most powerful and unpredictable states of the world. That too in a time of falling from glory. That man definitely knows what he wants to do. Right now, it was bullying Zelinsky into giving up on his ambitions to make Ukraine join NATO. Who thinks this wouldn't hurt the ego?

This war is a powerful man's reaction to being miffed by a smaller nation. That too in the belief that they don't want NATO at their doorstep. War is terrible but I do hope that world's people and twitterati would have the same reaction for all the other wars that have been inflicted by the so-called "democracies" for the last over two decades.

Its amazing how the cold war perceptions still live on after three decades.

Your don't need to be an expert to understand that Russia will get zero benefits from this war. Giant economic loss, international isolation, no military benefits even if they succeed. Even domestically it looks bad, as people protest.

[Lanatsa]

The Russian oligarchs has no choice if I'm not mistaken. So they should follow Putin no matter what because they know the consequences of going against him specially right now that he is flexing his muscle. I know it's going to be a hard decision for them, but you have to think, where do this oligarchs get their money from? what is their sources? Yeah they have been plundering Russia more many years now with Putin's backing them up. So they have to support him right now in his war.

They wouldnt really be having any other choice and its true that they do know on what would be the consequences if they wouldnt really be following on whats been said by Putin and now is the time on where he do need

up some help.If they do try to jump off the ship? For sure they do know on what would happen next once this war is over or been settled down.So now is the time for them to show up that support.

War does have that economic effects and this is the way on at least avoiding that free fall.

[usekevin]

This is 5 hours ago:

Russia will force companies to sell 80% of their foreign currency earnings - in other words buy rubles - Finance Ministry announces

This means that Putin is forcing Russian companies to buy rubles to avoid a free fall. This is normally done by central banks when their currency is under attack - the problem being is that when you need all your treasury to keep the invasion running, you cannot protect your currency. I wonder if the Russian oligarchs are having second thoughts on supporting this guy any longer?

https://twitter.com/JakeCordell/status/1498191397245042690

It was a common one and expected one by the economics persons.When the market was stock or begins to flows down.Most of the country do this,same was happened in 2008 world economic crisis and during the World War 2.So Russia is not a new to this strategy,they just following the old strategy to prevent their country economy.

[paxmao]

Its quite childlike of us to debate about whether Putin knows the cost of aggression or not. Here's a former KGB agent who has served as the head of state for one of the most powerful and unpredictable states of the world. That too in a time of falling from glory. That man definitely knows what he wants to do. Right now, it was bullying Zelinsky into giving up on his ambitions to make Ukraine join NATO. Who thinks this wouldn't hurt the ego?

This war is a powerful man's reaction to being miffed by a smaller nation. That too in the belief that they don't want NATO at their doorstep. War is terrible but I do hope that world's people and twitterati would have the same reaction for all the other wars that have been inflicted by the so-called "democracies" for the last over two decades.

Its amazing how the cold war perceptions still live on after three decades.

Your don't need to be an expert to understand that Russia will get zero benefits from this war. Giant economic loss, international isolation, no military benefits even if they succeed. Even domestically it looks bad, as people protest.

That is right, there will be a very high price to pay and achieving the long term strategic target of controlling and avoiding permanent foreign presence in the Black sea is very dubious.

Now, this is not a childish debate, Putin like all leaders know perfectly that you need money and a strong economy to sustain your stance in the world and, to be honest, a blow to Russian economy might make him loose the supports he currently enjoys at home. This is no joke and Putin is not a fool nor a madman - at least in the conventional sense.

On regards to Ukraine joining the NATO (OTAN in Spanish), I personally think there is much work to be done before they can become a member safely. On the end, OTAN has to be about making all members be safer and more influential.

...

This appears to be a good test for the "devaluing currency is good for exports" school of economic thought.

That is not a school of thought properly, but the usual lame excuse of governments that fail to remain competitive.

[CaVO32]

Its quite childlike of us to debate about whether Putin knows the cost of aggression or not. Here's a former KGB agent who has served as the head of state for one of the most powerful and unpredictable states of the world. That too in a time of falling from glory. That man definitely knows what he wants to do. Right now, it was bullying Zelinsky into giving up on his ambitions to make Ukraine join NATO. Who thinks this wouldn't hurt the ego?

This war is a powerful man's reaction to being miffed by a smaller nation. That too in the belief that they don't want NATO at their doorstep. War is terrible but I do hope that world's people and twitterati would have the same reaction for all the other wars that have been inflicted by the so-called "democracies" for the last over two decades.

Its amazing how the cold war perceptions still live on after three decades.

Your don't need to be an expert to understand that Russia will get zero benefits from this war. Giant economic loss, international isolation, no military benefits even if they succeed. Even domestically it looks bad, as people protest.

That is right, there will be a very high price to pay and achieving the long term strategic target of controlling and avoiding permanent foreign presence in the Black sea is very dubious.

Now, this is not a childish debate, Putin like all leaders know perfectly that you need money and a strong economy to sustain your stance in the world and, to be honest, a blow to Russian economy might make him loose the supports he currently enjoys at home. This is no joke and Putin is not a fool nor a madman - at least in the conventional sense.

On regards to Ukraine joining the OTAN, I personally think there is much work to be done before they can become a member safely. On the end, OTAN has to be about making all members be safer and more influential.

Wait, are you intentionally saying it OTAN? It should be NATO.

But I strongly believe that Putin knows the possible aftermath of this decision. I don't think he goes to war without planning and knowing the consequences of his actions. But the ones who are losing in this battle is the people in both countries, they are the ones directly experiencing the impact of this aggression. Putin is in a safe place but how about its people?

[Captain Corporate]

 When even the Swiss decides to take a side, you know you are not doing well. These are the people who hided the money for Nazi generals and so forth,  NAZI, imagine how weird it must be to be Putin and know that people who hided money for Nazis are not doing it for you. I mean even though I hate Putin and he is a horrible human being, I would easily assume that what Nazis did was much much much worse. In the end, Putin will put Russia in financial ruin, all the oligarchs will end up doing something about it, and Putin will be no longer. Thats how Russia works, you can do whatever you want as long as the rich are with you, the moment oligarchs turn their back on you, things won't be easy.

[arwin100]

Isnt that sanctioning USD too? These oligarchs prefer to used USD for ease of transactions.

Russia is cut of from Swift and the oligarchs will be affected soon because they are the ones using the bank transactions from other countries. Which if these oligarchs are tracked they will also be sanctioned with frozen bank accounts. Oligarchs with frozen bank account is worse.

This war is getting crazy they better be just buying BTC instead, if they are going to make transaction censored proof.

Well, in their economic status right now. With USD going down, they're more down with it.

All connections financially abroad to Russia were cut off.

The title is correct, this is the cost for the invasion that they do and I think they've foreseen this happening. It's more war with Russia, not just with the invasion, economically and even in cyberspace, they are at war.

Maybe from this Putin will think about that they are totally downplaying things and think about they dominate this war and for sure the people doing business on their country will feel this heavy sanctions imposed to them by other government in parts of the world and slowly they can see their economy collapsing little by little. Maybe this is the reason why there's a peace talk happening since maybe some of there government official already see this alerting and might there country will put in more high risk situation if more countries will stop dealing with their products and other more coming from Russian country.

[el kaka22]

Think about a nation that has been sanctioned, trades cut off, can't use exchanges, can't use other foreign money, 40%+ of their central banks money got frozen, all the rich people have their money frozen, all the flights cancelled, taken out of swift, and plenty other economical sanctions in the middle of a war, and look at some other nations like Argentina and turkey... Sometimes I wonder why that is, like Turkey for example lost a lot more value in their fiat in 2021, then Russia did during this war, maybe Russia will do worse over time, but Turkey did that like in a week.

I do not understand how Russia could still stand, I was expecting 1 dollar to become 500+ ruble by this time. Putin will use this wrongfully to show how "strong" they are, I am afraid it will end up badly.

[davis196]

Putin was pretty much expecting Ukraine to surrender 48 hours after the invasion.He's simply delusional at this point.
This didn't happen,now Putin will get into the downward spiral of war-sending more troops into Ukraine,which will make the war even more expensive for Russia.Some guy was saying that Russia is losing 20 billion dollars per day for every day in which the war continues.
What is overwhelming for me is that the Putin/Kremlin propaganda continues in my country(even though my country is a member of EU and NATO).Many people in my country still believe that Putin is fighting the evil Ukrainian nazis and that Putin is the good guy in this conflict.I guess that the paid trolls,followed by some delusional fanatic supporters of Putin are doing a good job with their propaganda.

[Wexnident]

I do not understand how Russia could still stand, I was expecting 1 dollar to become 500+ ruble by this time. Putin will use this wrongfully to show how "strong" they are, I am afraid it will end up badly.

I think it already ended up badly? Like I was sure Putin was trusting of how strong their army was, but well, results show that it really wasn't any stronger. From what I read about how it was described, it was something like a paper tiger. Putin probably overestimated his side and underestimated the other side. Pretty sure this war has brought nothing but losses to Putin's side probably contrary to his earlier expectations for the results of his assault.

Russia is probably gonna experience a huge shift after this, and most likely in a negative way.