The ruble is going to hell (not anymore?)

[Strongkored]

When European countries have to pay for gas supplies not in dollars or euros, but in rubles, the ruble will undoubtedly strengthen. Nobody will like this solution, but there is no choice. If European countries buy gas from Russia, they will boost the Russian economy and strengthen the ruble. Of course, this will require a change in long-term contracts, but in our time everything can be.

EU countries will likely not buy gas from Russia after the war in Ukraine. Today the US president started discussing with other countries like Canada and EU countries on how to stop purchase of Russian gas and strengthen the sanctions. Rubie will not be used in EU for trade instead euro or dollar.

Yes, but the question is how long it will take to implement that. They're not going to stop buying Russian gas today, is an issue that EU leaders were discussing yesterday:

"Germany, which gets 55% of its gas imports from Russia, however, has warned that an immediate ban would cause unemployment and stop drivers filling their cars. To stop using Russian energy “from one day to the next would mean plunging our country and all of Europe into recession”, the chancellor, Olaf Scholz, said on Wednesday.

He was supported by Belgium’s prime minister, Alexander De Croo, who said an oil embargo “would have a devastating effect on the European economy and I don’t think it’s necessary”.

So in the short term they're going to have to buy rubles, that's inevitable, and with that, the ruble will appreciate.

This method is used by Putin to retaliate against all the sanctions they get. Europe relies heavily on Russian gas and oil but other news says that this would violate existing contracts due to regular payments using Euros or USD. If Russia insists on accepting rubles only for countries that are not friendly to them then they will also lose the income that they also still need to pay for this war and all the costs in their countries, so in fact this condition gives european countries and Putin in confusing conditions.
https://www.reuters.com/business/energy/russian-demand-rouble-gas-payments-would-be-breach-contract-eu-leaders-say-2022-03-24/

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[Poker Player]

This method is used by Putin to retaliate against all the sanctions they get. Europe relies heavily on Russian gas and oil but other news says that this would violate existing contracts due to regular payments using Euros or USD. If Russia insists on accepting rubles only for countries that are not friendly to them then they will also lose the income that they also still need to pay for this war and all the costs in their countries, so in fact this condition gives european countries and Putin in confusing conditions.
https://www.reuters.com/business/energy/russian-demand-rouble-gas-payments-would-be-breach-contract-eu-leaders-say-2022-03-24/

I'm not exactly a Putin fan but I partly understand. It is a retaliatory action against the retaliatory actions that the countries that buy from him have taken.

When there is a breach of contract by the other party, what you can do is to consider the contract as broken, which in practice in this case would mean that they don't have to buy gas from Russia. But if they want to continue to do so, they will have to pay you in rubles.

This has another implication, and that is that Saddam Hussein was killed because he wanted to be paid for his oil in euros instead of dollars. With Putin they will not be able to do much, at least not that easily, and he is not the only threat to the hegemony of the dollar at present, but this would be the subject of another thread.

[bustabitsboy]

This method is used by Putin to retaliate against all the sanctions they get. Europe relies heavily on Russian gas and oil but other news says that this would violate existing contracts due to regular payments using Euros or USD. If Russia insists on accepting rubles only for countries that are not friendly to them then they will also lose the income that they also still need to pay for this war and all the costs in their countries, so in fact this condition gives european countries and Putin in confusing conditions.
https://www.reuters.com/business/energy/russian-demand-rouble-gas-payments-would-be-breach-contract-eu-leaders-say-2022-03-24/

I'm not exactly a Putin fan but I partly understand. It is a retaliatory action against the retaliatory actions that the countries that buy from him have taken.

When there is a breach of contract by the other party, what you can do is to consider the contract as broken, which in practice in this case would mean that they don't have to buy gas from Russia. But if they want to continue to do so, they will have to pay you in rubles.

This has another implication, and that is that Saddam Hussein was killed because he wanted to be paid for his oil in euros instead of dollars. With Putin they will not be able to do much, at least not that easily, and he is not the only threat to the hegemony of the dollar at present, but this would be the subject of another thread.

Of course, do not underestimate the Russian leader. He acts quickly and accurately. He knows that the rejection of Russian gas for some European countries will have serious negative consequences. In this situation, there are two options. Or refuse to supply Russian gas, or pay for it in rubles. If countries decide to abandon Russian gas and terminate the contract for its supply, the price will rise on the stock exchange and this will only aggravate the situation

[retreat]

Of course, do not underestimate the Russian leader. He acts quickly and accurately. He knows that the rejection of Russian gas for some European countries will have serious negative consequences. In this situation, there are two options. Or refuse to supply Russian gas, or pay for it in rubles. If countries decide to abandon Russian gas and terminate the contract for its supply, the price will rise on the stock exchange and this will only aggravate the situation

Another serious thing that might happen is the rising prices of basic necessities in European countries that refuse to buy oil from Russia in ruble, it's impossible to stop the vehicles supplying basic necessities from operating just because they want to go against the policies putin' on. European countries must be confused right now.

[bustabitsboy]

Of course, do not underestimate the Russian leader. He acts quickly and accurately. He knows that the rejection of Russian gas for some European countries will have serious negative consequences. In this situation, there are two options. Or refuse to supply Russian gas, or pay for it in rubles. If countries decide to abandon Russian gas and terminate the contract for its supply, the price will rise on the stock exchange and this will only aggravate the situation

Another serious thing that might happen is the rising prices of basic necessities in European countries that refuse to buy oil from Russia in ruble, it's impossible to stop the vehicles supplying basic necessities from operating just because they want to go against the policies putin' on. European countries must be confused right now.

I do not want to escalate the situation, but now it is not very clear who is going to hell

[Jating]

And now Russia is thinking of accepting bitcoin for their oil and gas.

Russia is considering accepting Bitcoin as payment for its oil and gas exports, according to a high-ranking lawmaker.

Pavel Zavalny says "friendly" countries could be allowed to pay in the crypto-currency or in their local currencies.

Earlier this week, Russian President Vladimir Putin said that he wanted "unfriendly" countries to buy its gas with roubles.

The move is understood to be aimed at boosting the Russian currency, which has lost over 20% in value this year.

Sanctions imposed by the UK, US and the European Union, following the invasion of Ukraine, have put a strain on Russia's rouble and raised its cost of living.

https://www.bbc.com/news/business-60870100

So to get away with the sanctions, Russia now is thinking of accepting bitcoin, not sure if this will be good for us as the US might mitigate this risk on bitcoin and for sure they are going to be scared.

[Lizzylove1]

This is what happens when you have a dictator in power, he just mess up everything and still won't care about the opinion of his people. Invading Ukraine was bad, a nation they share cultural heritage with and both nations have families in each others country. Negotiation would have solve this war. I hope Putin realizes he made a mistake and call for a permanent cease fire.

[DanWalker]

When European countries have to pay for gas supplies not in dollars or euros, but in rubles, the ruble will undoubtedly strengthen. Nobody will like this solution, but there is no choice. If European countries buy gas from Russia, they will boost the Russian economy and strengthen the ruble. Of course, this will require a change in long-term contracts, but in our time everything can be.

EU countries will likely not buy gas from Russia after the war in Ukraine. Today the US president started discussing with other countries like Canada and EU countries on how to stop purchase of Russian gas and strengthen the sanctions. Rubie will not be used in EU for trade instead euro or dollar.

Of course! they discussed, but the problem of finding an alternative to Russian oil remains unresolved and I don't think they can solve it in the short term. Accepting payments in RUB was a surprise counterattack by the Russian side, Europe will have to start hoarding rubles or will trade goods with Russia for rubles. Only then will they be able to buy oil from Russia.

[Sithara007]

Of course! they discussed, but the problem of finding an alternative to Russian oil remains unresolved and I don't think they can solve it in the short term. Accepting payments in RUB was a surprise counterattack by the Russian side, Europe will have to start hoarding rubles or will trade goods with Russia for rubles. Only then will they be able to buy oil from Russia.

Not just in the short term, but in the medium term and long term as well. Oil is a non-renewable resource and in a few decades we'll run out of this commodity. Among the oil producing nations, only Saudi Arabia has the capacity to increase oil production significantly (up to 2 million barrels per day). And that volume is not enough to replace the Russian production (11 to 12 million barrels per day). All that said, I don't think that the Europeans would start paying in Rubles. It will be a breach of contract terms from Russia to demand so.

[Gyfts]

Well, as you know, politics is something irreverent to everything that represents good customs, on the one hand there is talk about Venezuela's oil, and yes, they are allies of Russia, but on the other hand the USA negotiates with Venezuela and on the In a short time the Colombian government went to the same president to speak to Biden in the White House to tell him that Colombian oil is better than Venezuelan oil, then the roles are reversed and now the business is in Colombia, there is talk that there are Russian bases in Venezuela , and that there are US bases in Colombia, then this game of give and take is simply to have a status quo and guarantee US consumerism, the US is not interested in Ukraine, it will no longer enter NATO, we must be realistic, Russia it will not leave it anymore, now the USA's concern is to be well with them, and well with Europe, then the USA wants to be well with God and the Devil, so these are things that they do not see in Europe, or they see it and turn a blind eye, That's why I say, the conflict is political or geo-political where the only ones who benefit are the rulers and the people suffer, in this war the people never win.

Now the US is pampering not only to Venezuela, but to Iran as well. Still, the increased output from these two, on top of the increase from the other OPEC nations won't be able to fill the shortfall from Russia. If the Americans and their allies go ahead with their stupid move of prohibiting oil and gas exports from Russia, then the global economy will collapse in a matter of few months. Crude has already crossed three digits and is on course for $150 per barrel in the short term and $200+ in the long term. Natural gas prices are now at oil equivalent rates of $300-$400 per barrel in Europe.

This is what's most troubling about the U.S's dependency on oil. They will gladly look towards Iran or Venezuela for oil instead of increasing their own production. Iran is a terrorist state, and Venezuela is pro-Russia. I suppose they could beg OPEC to increase production, but it doesn't make much sense to ignore the reserves they already have control over. I speculate it's so that the Biden administration does not upset the green sector lobbyists by appearing to be pro-oil. But in a time of crisis, you'd think there'd be an exception.

[GelatikKembar]

This is what happens when you have a dictator in power, he just mess up everything and still won't care about the opinion of his people. Invading Ukraine was bad, a nation they share cultural heritage with and both nations have families in each others country. Negotiation would have solve this war. I hope Putin realizes he made a mistake and call for a permanent cease fire.

It's true that when the people protested and wanted the war to be stopped, the Russian police disbanded it and if I'm not mistaken, several were arrested.
true or not I'm pretty sure it's an order from Putin but what's clear is that it's a pity that the government doesn't listen to its people,
The whole world is also hoping for that and we'll see what happens next

[DanWalker]

Of course! they discussed, but the problem of finding an alternative to Russian oil remains unresolved and I don't think they can solve it in the short term. Accepting payments in RUB was a surprise counterattack by the Russian side, Europe will have to start hoarding rubles or will trade goods with Russia for rubles. Only then will they be able to buy oil from Russia.

Not just in the short term, but in the medium term and long term as well. Oil is a non-renewable resource and in a few decades we'll run out of this commodity. Among the oil producing nations, only Saudi Arabia has the capacity to increase oil production significantly (up to 2 million barrels per day). And that volume is not enough to replace the Russian production (11 to 12 million barrels per day). All that said, I don't think that the Europeans would start paying in Rubles. It will be a breach of contract terms from Russia to demand so.

I have read that many companies from Europe are accusing Russia of breach of contract because the ruble is not on the list of currencies in which they pay. But under European pressure many unreasonable sanctions were imposed on Russia, there is nothing wrong with Russia's counterattack. If European companies do not accept payments in rubles, the oil crisis will be even more dire.

[jostorres]

When a nation tries to take over a whole another nation, and if that victim nation is also white, then people will burn worlds to put up a front, especially if the attacker is already an enemy in mind. It is clear to me that we are talking about Russia and how the world already hates them for so many years, it is not a new thing. We had "red scare" in the USA like 60 years ago or so as well and it wasn't a new thing.

So, we should not be shocked that the world fell right back into that once again. As long as Russia is Russia, and the way they live is the same, and their culture is the same, the west will find a way to hate them, and sometimes they are right.

I do agree that it was a bit about Russia who was the one attacking, but if they attacked like Mongolia or Kazaks, do you really think that world would give the same response as they are right now? I do not think that they would even care about Ukraine as much if they weren't literally next to Poland, Hungary, Romania and so forth. Ukraine is literally the last front between Russia and Europe and if Ukraine is taken by the west and put into NATO and EU, then west would have a buffer zone in shape of Ukraine against Russia.

If Russia wins, then they have a buffer zone in shape of Ukraine against the west. That is the main reason why there was such a big noise about this.

[Sithara007]

I have read that many companies from Europe are accusing Russia of breach of contract because the ruble is not on the list of currencies in which they pay. But under European pressure many unreasonable sanctions were imposed on Russia, there is nothing wrong with Russia's counterattack. If European companies do not accept payments in rubles, the oil crisis will be even more dire.

For deliveries as per the existing contracts, I don't think that Russia can demand payment in RUR. Maybe for spot deliveries they can demand that. All this rhetoric is just to warn Europeans that if they go too far with the sanctions, then their gas and oil supply will be disrupted. In the end, who is actually suffering? Oil prices are close to historic highs and energy prices in Western Europe has soared to such levels to make lives of ordinary people miserable. And I don't think that Russia is much impacted. The last time I checked, Sokol crude has once again breached the $100 per barrel level.

[Vaskiy]

This method is used by Putin to retaliate against all the sanctions they get. Europe relies heavily on Russian gas and oil but other news says that this would violate existing contracts due to regular payments using Euros or USD. If Russia insists on accepting rubles only for countries that are not friendly to them then they will also lose the income that they also still need to pay for this war and all the costs in their countries, so in fact this condition gives european countries and Putin in confusing conditions.
https://www.reuters.com/business/energy/russian-demand-rouble-gas-payments-would-be-breach-contract-eu-leaders-say-2022-03-24/

I'm not exactly a Putin fan but I partly understand. It is a retaliatory action against the retaliatory actions that the countries that buy from him have taken.

When there is a breach of contract by the other party, what you can do is to consider the contract as broken, which in practice in this case would mean that they don't have to buy gas from Russia. But if they want to continue to do so, they will have to pay you in rubles.

This has another implication, and that is that Saddam Hussein was killed because he wanted to be paid for his oil in euros instead of dollars. With Putin they will not be able to do much, at least not that easily, and he is not the only threat to the hegemony of the dollar at present, but this would be the subject of another thread.

Putin stands strong without taking into consideration his people. Right now he wants to throw away the Ukrainian government and establish his Moscow regime in Ukraine. After several bilateral talks there is no conclusion on the war due to varied demands. Amidst this Ukraine have applied to join the European Union and how far this gonna happen.

Russia's oil wealth is the one that can help Putin overcome the ruble fall. In the recent announcement of paying ruble for oil and gas made small changes in the ruble. Maybe his plan is to extend the war until his things get settled in his country. Since then we can see different approach from him to overcome sanctions.

[Desscount]

This method is used by Putin to retaliate against all the sanctions they get. Europe relies heavily on Russian gas and oil but other news says that this would violate existing contracts due to regular payments using Euros or USD. If Russia insists on accepting rubles only for countries that are not friendly to them then they will also lose the income that they also still need to pay for this war and all the costs in their countries, so in fact this condition gives european countries and Putin in confusing conditions.
https://www.reuters.com/business/energy/russian-demand-rouble-gas-payments-would-be-breach-contract-eu-leaders-say-2022-03-24/

I'm not exactly a Putin fan but I partly understand. It is a retaliatory action against the retaliatory actions that the countries that buy from him have taken.

When there is a breach of contract by the other party, what you can do is to consider the contract as broken, which in practice in this case would mean that they don't have to buy gas from Russia. But if they want to continue to do so, they will have to pay you in rubles.

This has another implication, and that is that Saddam Hussein was killed because he wanted to be paid for his oil in euros instead of dollars. With Putin they will not be able to do much, at least not that easily, and he is not the only threat to the hegemony of the dollar at present, but this would be the subject of another thread.

Putin stands strong without taking into consideration his people. Right now he wants to throw away the Ukrainian government and establish his Moscow regime in Ukraine. After several bilateral talks there is no conclusion on the war due to varied demands. Amidst this Ukraine have applied to join the European Union and how far this gonna happen.

Russia's oil wealth is the one that can help Putin overcome the ruble fall. In the recent announcement of paying ruble for oil and gas made small changes in the ruble. Maybe his plan is to extend the war until his things get settled in his country. Since then we can see different approach from him to overcome sanctions.

Russia is really helped a lot by having oil otherwise I think Russia will find it difficult to face sanctions from Europe and other countries,
if you see Putin with no consideration for his people at all it is like a dictator whose decisions are absolutely absolute and cannot be contested,
we will follow the progress of how far and how long this war will last and hope it will end soon

[Sithara007]

Russia's oil wealth is the one that can help Putin overcome the ruble fall. In the recent announcement of paying ruble for oil and gas made small changes in the ruble. Maybe his plan is to extend the war until his things get settled in his country. Since then we can see different approach from him to overcome sanctions.

Ruble has made a remarkable recovery recently. When the war started, it had plummeted to 1 USD = 140 RUR. The last time I checked, the exchange rate was 1 USD = 95 RUR. It is still down from the levels before the war, but the downslide is not as worse as some of the experts predicted. Also, the Urals crude is still being sold, although at a discount of around $30 per barrel (at an effective rate of approx. $80 per barrel). Russian natural gas is being sold to Europe without any discount and demand is increasing for discounted deliveries to Asia.

[Tony116]

When European countries have to pay for gas supplies not in dollars or euros, but in rubles, the ruble will undoubtedly strengthen. Nobody will like this solution, but there is no choice. If European countries buy gas from Russia, they will boost the Russian economy and strengthen the ruble. Of course, this will require a change in long-term contracts, but in our time everything can be.

EU countries will likely not buy gas from Russia after the war in Ukraine. Today the US president started discussing with other countries like Canada and EU countries on how to stop purchase of Russian gas and strengthen the sanctions. Rubie will not be used in EU for trade instead euro or dollar.

Let's see what happens at the end of the month, Russian President Putin signed a decree allowing the start of payments in rubles on March 31. If they do not accept the ruble, it means that Europeans will have to enter a long winter without gas to keep warm. There is still no effective solution to the gas problem in Europe, everything is just discussing and finding a solution.

[Haunebu]

Ruble continues to recover which isn't really surprising since Putin most probably predicted this and planned various measures to counter these issues. This power hungry maniac didn't decide to invade Ukraine on a whim.

He probably planned to execute it once the pandemic effect decreased. Ruble definitely suffered a lot because of his actions, but I don't think it will lead to a Russian economic collapse.

[romeitaly]

Ruble continues to recover which isn't really surprising since Putin most probably predicted this and planned various measures to counter these issues. This power hungry maniac didn't decide to invade Ukraine on a whim.

He probably planned to execute it once the pandemic effect decreased. Ruble definitely suffered a lot because of his actions, but I don't think it will lead to a Russian economic collapse.

It might not lead to a collapse but the economic sanctions that's going to be imposed and has been imposed by the west and the other neighboring countries would be the reason for it's collapse, like in World War 1 and 2, the initiators will always pay the highest of price and economic collapse will always happen.