Economic sanctions are not a war declaration

[TheCoinGrabber]

I guess he just have to double-down. If they're not doing business with Russia then he would probably retaliate by withholding access to gas and oil.

Putin cannot actually follow through on threats to stop selling oil and gas. This is how Putin is financing the war. If Putin stops selling Russian energy to the West, he will quickly run out of money.

Putin's best bet is to threaten to withhold Russian energy from Europe to coerce them into lifting other sanctions, and into stopping supporting Ukraine militarily.

Yes he can threaten them but he can probably just shut it of if he get cornered enough. Maybe not entirely, maybe just halt it for a few hours to cause interruptions to make it clear that they need it. So far it hasn't happened because they did not do any drastic military actions yet.

[be.open]

I don't know about Russia's retaliatory capabilities against countries that don't border them but Putin will likely try something.

Putin today announced the sale of gas for rubles to unfriendly countries.

What kind of nonsense is this? There is no reason why Putin would want more Rubles? The Ruble is worthless and Putin has the ability to print an unlimited supply of Rubles.

I guess he just have to double-down. If they're not doing business with Russia then he would probably retaliate by withholding access to gas and oil.

Putin cannot actually follow through on threats to stop selling oil and gas. This is how Putin is financing the war. If Putin stops selling Russian energy to the West, he will quickly run out of money.

Putin's best bet is to threaten to withhold Russian energy from Europe to coerce them into lifting other sanctions, and into stopping supporting Ukraine militarily.

As soon as Putin announced that Russia would sell gas for rubles, the ruble became the currency backed by Russian gas, which Europe needs right now just to survive and prevent the collapse of industrial production. What you call "money" is no longer money for Putin, the US dollar and the euro are completely discredited in the eyes of Russia by the freezing of foreign exchange reserves of the Central Bank of the Russian Federation. The ruble is money, the yuan is money, gold also has value, and the US dollar and euro are empty shells, backed by a trust in the US and the EU that no longer exists. And given Russia's large trade surplus, this is more of a problem for the US and the EU than a problem for Russia.

Frankly, I was more surprised by the sanctions from Switzerland, which has remained neutral for more than 300 years and did not refuse service even to Hitler. In essence, this means that the Central Bank of the Russian Federation has ceased to be subordinate to the Bank for International Settlements and is pursuing an independent monetary policy with priority on the interests of Russia. If the EU buys gas for rubles, the ruble will begin to strengthen to any price levels that suit the Central Bank of Russia. And all the risks and overheads from circumventing its own sanctions will fall on the shoulders of the European Union.

[paxmao]

I don't know about Russia's retaliatory capabilities against countries that don't border them but Putin will likely try something.

Putin today announced the sale of gas for rubles to unfriendly countries.

What kind of nonsense is this? There is no reason why Putin would want more Rubles? The Ruble is worthless and Putin has the ability to print an unlimited supply of Rubles.

I guess he just have to double-down. If they're not doing business with Russia then he would probably retaliate by withholding access to gas and oil.

Putin cannot actually follow through on threats to stop selling oil and gas. This is how Putin is financing the war. If Putin stops selling Russian energy to the West, he will quickly run out of money.

Putin's best bet is to threaten to withhold Russian energy from Europe to coerce them into lifting other sanctions, and into stopping supporting Ukraine militarily.

As soon as Putin announced that Russia would sell gas for rubles, the ruble became the currency backed by Russian gas, which Europe needs right now just to survive and prevent the collapse of industrial production. What you call "money" is no longer money for Putin,

...

Until Putin needs to import anything from outside his Tzardom, in which case all the sudden money is, in the end, USD, Euros or Yuans as the ruble has zero use abroad.

Germany - not all Europe - needs a supply of gas that needs to pay in USD, as per the contracts signed for that supply. Putin has broken the international laws of commerce (not that he cares) and will pay dearly for it, as reputation cannot be brought back even paying for it. If you have any doubt about it, just consider if you would ever buy from someone that decides to change the signed terms unilaterally.

As of now, I have not seen Putin cutting the supply either, yet I have seen Germany stating a strategy to diversify the supply in 2 years. Please, kindly as Putin if he thinks China will pay full price for his gas, as they will be their one and only client in 2 years. Ask the 200.000 Russian people that have left their country how they feel about this victory and, to those that remain, ask them how they feel about having the GPD limping and their jobs disappearing.

Putin's Russia has also de-facto defaulted the payment of debt. Would you lend money to Putin again? If you are unsure about the answer, just wait and see.

[suchmoon]

As soon as Putin announced that Russia would sell gas for rubles

He can announce that he's the King of Mars, that doesn't make it real.

Frankly, I was more surprised by the sanctions from Switzerland, which has remained neutral for more than 300 years and did not refuse service even to Hitler.

Yeah a good hint as to how bad Putin's regime is.

[paxmao]

As soon as Putin announced that Russia would sell gas for rubles

He can announce that he's the King of Mars, that doesn't make it real.

Frankly, I was more surprised by the sanctions from Switzerland, which has remained neutral for more than 300 years and did not refuse service even to Hitler.

Yeah a good hint as to how bad Putin's regime is.

When Switzerland is somehow reluctant to take your money it is definitely time to worry.

[be.open]

Until Putin needs to import anything from outside his Tzardom, in which case all the sudden money is, in the end, USD, Euros or Yuans as the ruble has zero use abroad.

Russia, under the pressure of sanctions, reduced imports to almost zero, but the Russian economy did not collapse. Russia has been well prepared for sanctions since 2014 and is protected from food shortages amid an energy glut. The import is important, but no instant catastrophic drama came from its overlap.

Germany - not all Europe - needs a supply of gas that needs to pay in USD, as per the contracts signed for that supply. Putin has broken the international laws of commerce (not that he cares) and will pay dearly for it, as reputation cannot be brought back even paying for it. If you have any doubt about it, just consider if you would ever buy from someone that decides to change the signed terms unilaterally.

Many countries in Europe depend on Russian gas, but Germany is the most. Gazprom, even a month after the start of the special operation, pumps the maximum volume through the gas pipeline in Ukraine, showing itself to be a reliable supplier. The imposed sanctions do not allow Gazprom to receive and manage the money received as payment for the supplied gas, and Putin said to sell gas for rubles. For Gazprom, these are force majeure circumstances, quite a good reason to revise all contracts. Moreover, the European Union has created a special European Commission for the purchase of gas from Russia, so as not to create internal competition between different European countries in the price struggle for the same volumes.

As of now, I have not seen Putin cutting the supply either, yet I have seen Germany stating a strategy to diversify the supply in 2 years. Please, kindly as Putin if he thinks China will pay full price for his gas, as they will be their one and only client in 2 years. Ask the 200.000 Russian people that have left their country how they feel about this victory and, to those that remain, ask them how they feel about having the GPD limping and their jobs disappearing.

Germany needs Russian gas here and now, and the most optimistic strategy for phasing out Russian energy sources is designed for two years. The energy system is designed for a gas pipeline, to switch to liquefied gas it is necessary to build many tankers and terminals - and this is difficult, long and expensive. Most likely, new contracts between Russia and the European Union with the calculation in rubles will be signed directly or through a democratic lining.

The United States is acting according to the old manual, trying to embroil Russia and Germany. However, Russia's turn to the east could create an alliance of Russia, India and China, the likes of which the world has not yet seen in strength.

Putin's Russia has also de-facto defaulted the payment of debt. Would you lend money to Putin again? If you are unsure about the answer, just wait and see.

After the sanctions have blocked the funds of the Central Bank of Russia in dollars and euros, with a ban on operations with gold, it is ridiculous to talk about Russia's default, rather it is a default of the West. Russia lives with a budget surplus and does not have a large external debt.

[Veleor]

Many countries in Europe depend on Russian gas, but Germany is the most.

The Statista website has reported in the recent article that among European countries the largest dependence on Russian gas is in such countries as North Macedonia, Bosnia and Herzegovina, Moldova, Finland, Latvia and Bulgaria. Next on the list are Germany, Italy, Poland, France, etc.

[paxmao]

...
Many countries in Europe depend on Russian gas, but Germany is the most. Gazprom, even a month after the start of the special operation, pumps the maximum volume through the gas pipeline in Ukraine, showing itself to be a reliable supplier. The imposed sanctions do not allow Gazprom to receive and manage the money received as payment for the supplied gas, and Putin said to sell gas for rubles. For Gazprom, these are force majeure circumstances, quite a good reason to revise all contracts. Moreover, the European Union has created a special European Commission for the purchase of gas from Russia, so as not to create internal competition between different European countries in the price struggle for the same volumes.

As of now, I have not seen Putin cutting the supply either, yet I have seen Germany stating a strategy to diversify the supply in 2 years. Please, kindly as Putin if he thinks China will pay full price for his gas, as they will be their one and only client in 2 years. Ask the 200.000 Russian people that have left their country how they feel about this victory and, to those that remain, ask them how they feel about having the GPD limping and their jobs disappearing.

Germany needs Russian gas here and now, and the most optimistic strategy for phasing out Russian energy sources is designed for two years. The energy system is designed for a gas pipeline, to switch to liquefied gas it is necessary to build many tankers and terminals - and this is difficult, long and expensive. Most likely, new contracts between Russia and the European Union with the calculation in rubles will be signed directly or through a democratic lining.

The United States is acting according to the old manual, trying to embroil Russia and Germany. However, Russia's turn to the east could create an alliance of Russia, India and China, the likes of which the world has not yet seen in strength.

Putin's Russia has also de-facto defaulted the payment of debt. Would you lend money to Putin again? If you are unsure about the answer, just wait and see.

After the sanctions have blocked the funds of the Central Bank of Russia in dollars and euros, with a ban on operations with gold, it is ridiculous to talk about Russia's default, rather it is a default of the West. Russia lives with a budget surplus and does not have a large external debt.

Ok, seems like I have some work here:

a) The commission created is actually to NOT buy gas from Russia, but to find reasonable alternative suppliers without competing.
b) To put things in context, Germany uses around 40% of Russian gas. That is no more than  10% of the total energy consumption of Germany.
c) The liquefaction facilities take a couple of years to build - less if you are really in a hurry, just as I said.
d) An alliance with China an India... sure, go for it and good luck. Putin has shown to be a great partner, who would not want him covering ones back? (It is ironic just in case).
e) Russia has prepared well for sanctions, until Putin got a large chunk of his reserves retained. Did he "prepare" that? What do you think that happens to a country that takes a 10% hit on its GDP after already loosing 10% to COVID? We are talking people looking in thrash cans a the young selling their bodies to save for a ticket out. Even the military may not get paid.

But you biggest piece here: "Force Majeure"

The definition of Force Majeure is certainly not that you currency is devaluating - not even a war unless it damages the infrastructure or makes it impossible to meet the supply - seriously, who told you that Putin supporting the Ruble is even remotely close to the legal definition of force majeure anywhere? Did you make that up yourself or is it the official propaganda?

Not even COVID has been considered as such for many business across several jurisdictions and even in that case you cannot change the payment or rents or other elements of contracts, at most you could not supply if, for example, a super-earthquake breaks the pipes (they are actually designed so that they don't break, but just as example).

[be.open]

Many countries in Europe depend on Russian gas, but Germany is the most.

The Statista website has reported in the recent article that among European countries the largest dependence on Russian gas is in such countries as North Macedonia, Bosnia and Herzegovina, Moldova, Finland, Latvia and Bulgaria. Next on the list are Germany, Italy, Poland, France, etc.

If we look at the absolute figures of Russian gas consumption by European countries, the picture will change. Germany consumes a lot of Russian gas because it has a developed industry and because Germany, under pressure from environmentalists, curtailed its nuclear energy, unlike, say, France - which also consumes a lot of Russian gas, but is much more protected from the problem of energy hunger.

ps According to your statistics, Ukraine depends on Russian gas by 0%, although Ukraine depends on the reverse of Russian gas from Slovenia.

a) The commission created is actually to NOT buy gas from Russia, but to find reasonable alternative suppliers without competing.
b) To put things in context, Germany uses around 40% of Russian gas. That is no more than  10% of the total energy consumption of Germany.
c) The liquefaction facilities take a couple of years to build - less if you are really in a hurry, just as I said.
d) An alliance with China an India... sure, go for it and good luck. Putin has shown to be a great partner, who would not want him covering ones back? (It is ironic just in case).
e) Russia has prepared well for sanctions, until Putin got a large chunk of his reserves retained. Did he "prepare" that? What do you think that happens to a country that takes a 10% hit on its GDP after already loosing 10% to COVID? We are talking people looking in thrash cans a the young selling their bodies to save for a ticket out. Even the military may not get paid.

a) This commission will buy all gas for the whole of Europe, so in all existing contracts for the supply of gas, at least the host will change. I think the contract currency will also change from dollar or euro to ruble.
b) Gas is not only heating houses in winter, but also a raw material for electricity generation and chemical industries (such as the production of fertilizers for agriculture). Gas stocks in Europe's storage facilities are at historically low levels after this winter and need to be replenished quickly to reach acceptable levels by next winter. This is a serious problem for Germany and all of Europe. Farmers in Italy and Spain are already rallying against the increase in the price of fertilizers, they are rallying instead of carrying out sowing work. By paralyzing its industry with the immediate rejection of Russian gas, Europe is turning itself into a concentration of acute political, economic and social problems.
c) Good luck.
d) The union of Russia with India and China is a terrible dream of the West. India and China have colossal human resources, and Russia has colossal natural resources. India and China have disagreements and mutual claims, but if Russia manages to balance them and settle them as an arbitrator, then this is a serious bid for dominance in the world.
e) Yes, Putin prepared this, a very well-planned special operation. Excellent strategy and decent implementation. The story is in full swing - you will see everything for yourself.

But you biggest piece here: "Force Majeure"

The definition of Force Majeure is certainly not that you currency is devaluating - not even a war unless it damages the infrastructure or makes it impossible to meet the supply - seriously, who told you that Putin supporting the Ruble is even remotely close to the legal definition of force majeure anywhere? Did you make that up yourself or is it the official propaganda?

Not even COVID has been considered as such for many business across several jurisdictions and even in that case you cannot change the payment or rents or other elements of contracts, at most you could not supply if, for example, a super-earthquake breaks the pipes (they are actually designed so that they don't break, but just as example).

I have not read Gazprom's gas supply contracts. I know that all contracts concluded after 2014 provide for the possibility of payment in rubles. For example, Bulgaria has such a contract and sees no problem in paying for gas in rubles. In my opinion, the impossibility for Gazprom, due to the sanctions imposed on Russia, to freely dispose of its proceeds from the sale of gas in euros and dollars is a force majeure circumstance for Gazprom and a good reason for the immediate termination of contracts without any penalties. Europe seriously thinks that Russia should continue to supply gas for free and at the same time apologize for invading Ukraine? It doesn't work that way.

As soon as Putin announced that Russia would sell gas for rubles

He can announce that he's the King of Mars, that doesn't make it real.

So far, it seems that it is the EU politicians who are in the clouds and make a lot of populist statements. On April 1, gas supplies to Europe are possible only for rubles, and this is not a joke on a fool's day. 

Frankly, I was more surprised by the sanctions from Switzerland, which has remained neutral for more than 300 years and did not refuse service even to Hitler.

Yeah a good hint as to how bad Putin's regime is.

Moral aside, Putin's regime is very efficient. No one before Putin so consistently imposed such a high efficiency of the management system on the colossal excess of natural resources of such a geographically huge country. Europe listened poorly to Putin at the Munich security conference in 2007 and is reaping the rewards of its strategic myopia.

[moderator's note: consecutive posts merged]

[Veleor]

According to your statistics, Ukraine depends on Russian gas by 0%, although Ukraine depends on the reverse of Russian gas from Slovenia.

These are not my statistics, but from a specialized European site. This Statista picture apparently shows only direct gas purchases from Russia and doesn't take resales into account. Ukraine has not used Russian gas since 2015 only formally, but actually buys it through Hungary and Slovakia.

[yazher]

I was wondering if they gonna stop the war because of these multiple sanctions since the day there invade Ukraine but guess what? they still going strong and wanted to take all the major cities as soon as possible. The Ukrainian army doesn't stop depending on their country which makes this war longer than speculated. just today, they regained back one city from the Russian troops. I don't know but I think sanctions are just for poor countries and a country like Russia is immune to this kind of counter against their country.

[be.open]

According to your statistics, Ukraine depends on Russian gas by 0%, although Ukraine depends on the reverse of Russian gas from Slovenia.

These are not my statistics, but from a specialized European site. This Statista picture apparently shows only direct gas purchases from Russia and doesn't take resales into account. Ukraine has not used Russian gas since 2015 only formally, but actually buys it through Hungary and Slovakia.

I think Europe will buy gas from Russia in a similar way with the help of a virtual reverse through Bulgaria or Turkey, additionally paying for their intermediary services, but doing it without pleasure. However, we will soon see everything for ourselves. It is not clear how Europe will get out of this delicate situation while trying to save face, but Russia's message to Europe does not allow for ambiguity and room for double interpretation: "No money - no honey".

[paxmao]

According to your statistics, Ukraine depends on Russian gas by 0%, although Ukraine depends on the reverse of Russian gas from Slovenia.

These are not my statistics, but from a specialized European site. This Statista picture apparently shows only direct gas purchases from Russia and doesn't take resales into account. Ukraine has not used Russian gas since 2015 only formally, but actually buys it through Hungary and Slovakia.

I think Europe will buy gas from Russia in a similar way with the help of a virtual reverse through Bulgaria or Turkey, additionally paying for their intermediary services, but doing it without pleasure. However, we will soon see everything for ourselves. It is not clear how Europe will get out of this delicate situation while trying to save face, but Russia's message to Europe does not allow for ambiguity and room for double interpretation: "No money - no honey".

I think Putin's Russia will be a very helpful partner, selling Europe everything they need to keep on producing the weapons to kill the young untrained Russian soldiers. Curiously, the bullets that kill them could be paid in rubles as per your theory.

This is sad, even my great sense of humour is not enough to laugh at this.

[be.open]

According to your statistics, Ukraine depends on Russian gas by 0%, although Ukraine depends on the reverse of Russian gas from Slovenia.

These are not my statistics, but from a specialized European site. This Statista picture apparently shows only direct gas purchases from Russia and doesn't take resales into account. Ukraine has not used Russian gas since 2015 only formally, but actually buys it through Hungary and Slovakia.

I think Europe will buy gas from Russia in a similar way with the help of a virtual reverse through Bulgaria or Turkey, additionally paying for their intermediary services, but doing it without pleasure. However, we will soon see everything for ourselves. It is not clear how Europe will get out of this delicate situation while trying to save face, but Russia's message to Europe does not allow for ambiguity and room for double interpretation: "No money - no honey".

I think Putin's Russia will be a very helpful partner, selling Europe everything they need to keep on producing the weapons to kill the young untrained Russian soldiers. Curiously, the bullets that kill them could be paid in rubles as per your theory.

This is sad, even my great sense of humour is not enough to laugh at this.

Let's try to stick to the economic aspects of sanctions and counter-sanctions in this topic, without moralizing. I understand that in the West Putin is considered the personification of evil, and all Russians in the light of the Western media apparently look like wild barbarians and bloodthirsty orcs. But Europe is already beginning to understand that among the millions of refugees from Ukraine there are many Nazis who desecrate monuments to Soviet soldiers during the Second World War and behave defiantly and unceremoniously, demanding special treatment just because of their nationality and just because "Ukraine über alles". Over time, the veil of lies will fall from the eyes of ordinary Europeans once and for all, when they realize that they are suffering from their own sanctions more than Russia. But gas prices under long-term contracts will not be the same.

Germany may not freeze to death without Russian gas (wearing a warm sweater  ), but it was cheap Russian pipeline gas that gave Germany the competitive edge to remain a strong industrial nation. In 2021, the average price of gas supplies by Gazprom under long-term contracts was $270 per thousand cubic meters. Gazprom is not interested in short-term gas supplies at spot prices, it does not deal with this. Tankers with liquefied gas became interested in the European market and turned away from deliveries to Asia after the price of gas on the European exchange exceeded $2,000 per thousand cubic meters. This is the approximate price point at which Europe will be able to buy gas in the near future, if it can find sufficient volumes on the market to meet its needs.

Russia already has experience cutting off gas to intractable partners. On January 1, 2009, Russia cut off gas to Ukraine. Nine days later, the Ukrainian delegation signed in Moscow a new contract for the supply of gas at a price several times higher. The lessons of history teach that they teach nothing. Well, as we like to say in Russia: "Moжeм пoвтopить".

[paxmao]

According to your statistics, Ukraine depends on Russian gas by 0%, although Ukraine depends on the reverse of Russian gas from Slovenia.

These are not my statistics, but from a specialized European site. This Statista picture apparently shows only direct gas purchases from Russia and doesn't take resales into account. Ukraine has not used Russian gas since 2015 only formally, but actually buys it through Hungary and Slovakia.

I think Europe will buy gas from Russia in a similar way with the help of a virtual reverse through Bulgaria or Turkey, additionally paying for their intermediary services, but doing it without pleasure. However, we will soon see everything for ourselves. It is not clear how Europe will get out of this delicate situation while trying to save face, but Russia's message to Europe does not allow for ambiguity and room for double interpretation: "No money - no honey".

I think Putin's Russia will be a very helpful partner, selling Europe everything they need to keep on producing the weapons to kill the young untrained Russian soldiers. Curiously, the bullets that kill them could be paid in rubles as per your theory.

This is sad, even my great sense of humour is not enough to laugh at this.

[blah blah Russia is great blah blah the UE will suffer...]

Germany may not freeze to death without Russian gas (wearing a warm sweater  ), but it was cheap Russian pipeline gas that gave Germany the competitive edge to remain a strong industrial nation.

[...]

Russia already has experience cutting off gas to intractable partners. On January 1, 2009, Russia cut off gas to Ukraine. Nine days later, the Ukrainian delegation signed in Moscow a new contract for the supply of gas at a price several times higher. The lessons of history teach that they teach nothing. Well, as we like to say in Russia: "Moжeм пoвтopить".

The future is to get rid of gas altogether, perhaps this is going to accelerate that as COVID accelerated remote working. Germany and the EU in general have options, as I guess Putin has options on where to sell his gas... eventually the market will reconfigure, but what cannot be ever restored is reputation and confidence. Anyone buying from Putin knows that contracts are wet paper and that by connecting to his version of Russia they are becoming weaker.

Do you think that after changing the payment and eventually threatening to cut contractually signed gas supplies would any country invest ever in a gas pipe to connect to Putin's Russia? Do you dream of an Eastern alliance with such a reputation?

There will be hard times ahead, there is no winner to this stupid war, but if I had to choose where to live those times, I am certain it would not be in Putin's Russia. You will have gas and heating, but millions of people will not have money to pay for it. Germany will also loose in some of its industrial sectors, but still has marging.

BTW, I have a completely different version of the negotiations with Ukraine regarding the gas, as Putin needed the agreement of Ukraine to send gas to the EU. As we like to say in some of the places I live "donde tengas la olla no metas la polla".

[be.open]

The future is to get rid of gas altogether, perhaps this is going to accelerate that as COVID accelerated remote working. Germany and the EU in general have options, as I guess Putin has options on where to sell his gas... eventually the market will reconfigure, but what cannot be ever restored is reputation and confidence. Anyone buying from Putin knows that contracts are wet paper and that by connecting to his version of Russia they are becoming weaker.

The energy system of Germany is focused on pipeline gas from Russia. In general, the current European strategy for the transition to carbon-free green energy relies on hydrogen, which is planned to be produced in Russia and delivered to Europe through the existing gas pipeline system with the addition of 20% natural gas (because pure hydrogen is a very volatile gas). All gas pipelines to Europe, including the non-certified Nord Stream 2, allow hybrid operation of a mixture of hydrogen and natural gas. Wind turbines and solar energy are too unstable to be a reliable main energy system, so Europe has bet on hydrogen in its future. Maybe Germany has a new energy strategy recently, I don't know anything about that.

Do you think that after changing the payment and eventually threatening to cut contractually signed gas supplies would any country invest ever in a gas pipe to connect to Putin's Russia? Do you dream of an Eastern alliance with such a reputation?

I think the freezing of funds of the Central Bank of the Russian Federation is a serious reputational damage for the West. The USA, Great Britain, the European Union, Japan and even Switzerland have significantly discredited their own national currencies in the eyes of the entire world community - the US dollar, the pound sterling, the euro, the Japanese yen and the Swiss franc, these fiat currencies can no longer be considered reliable enough for long-term storage, because they can be easily frozen, just when you need them most. The value of fiat currencies rests on the trust in the issuer, and this trust no longer exists. In fact, this is the end of the Jamaican monetary system.

There will be hard times ahead, there is no winner to this stupid war, but if I had to choose where to live those times, I am certain it would not be in Putin's Russia. You will have gas and heating, but millions of people will not have money to pay for it. Germany will also loose in some of its industrial sectors, but still has marging.

Europe is now puffing out its cheeks indignantly, but in European politics there is no leader with charisma like Che Guevara or Castro, who will set fire to the stadium with a fiery speech and the crowd in ecstasy will begin to chant "Freedom or death!" Talking heads speak in the media, but the real gas contracts are between commercial enterprises. The exchange rate of the ruble on Forex is growing, which means that non-residents are buying the ruble, preparing for the prospect of paying their gas contracts in rubles. Tomorrow the operating mechanism of gas payment for rubles will be made public. Yesterday, gas stopped flowing through Poland through a branch of the gas pipeline.

Usually, Putin's first offer is the most profitable for his partners - gas for rubles while maintaining the price of the contract. A little later there will be a new offer, less profitable, but still acceptable - gas for rubles with a revision of the price in the direction of the market.

BTW, I have a completely different version of the negotiations with Ukraine regarding the gas, as Putin needed the agreement of Ukraine to send gas to the EU. As we like to say in some of the places I live "donde tengas la olla no metas la polla".

Sometimes it seems that you and I generally live in some kind of parallel worlds. One and the same reality and we have such a different view of it. It's funny that we can still continue the dialogue.

[suchmoon]

in European politics there is no leader with charisma like Che Guevara or Castro

That's why Russia with its "leaders" is in the shitter while the rest of the civilized world has realized that giving all power to one person is a bad idea and came up with various albeit imperfect ways of distributing that power.

On April 1, gas supplies to Europe are possible only for rubles, and this is not a joke on a fool's day.

Tomorrow the operating mechanism of gas payment for rubles will be made public.

Sounds like a 30-year old living in mom's basement. "I will move out tomorrow". "I actually meant that tomorrow I will announce a mechanism for moving out but if you object to my insane conditions I will gladly stay".

[be.open]

On April 1, gas supplies to Europe are possible only for rubles, and this is not a joke on a fool's day.

Tomorrow the operating mechanism of gas payment for rubles will be made public.

Sounds like a 30-year old living in mom's basement. "I will move out tomorrow". "I actually meant that tomorrow I will announce a mechanism for moving out but if you object to my insane conditions I will gladly stay".

You are so funny when you squirt bile. Here is Putin's decree on the "gas for rubles" mechanism, which begins to operate from tomorrow.

[suchmoon]

You are so funny when you squirt bile. Here is Putin's decree on the "gas for rubles" mechanism, which begins to operate from tomorrow.

Here is the "mechanism": Gazprom bank would open euro/dollar and ruble accounts for gas buyers; buyers are supposed to transfer euros/dollars; the bank then would convert those euros/dollars to rubles; Gazprom would take those rubles.

[af_newbie]

You are so funny when you squirt bile. Here is Putin's decree on the "gas for rubles" mechanism, which begins to operate from tomorrow.

Here is the "mechanism": Gazprom bank would open euro/dollar and ruble accounts for gas buyers; buyers are supposed to transfer euros/dollars; the bank then would convert those euros/dollars to rubles; Gazprom would take those rubles.

The companies with existing contracts pay in Euros. The new contracts, if any, will need to be negotiated in Rubles.

German gas suppliers continue to pay Gazprom in Euros, just like before the war/sanctions.

What Gazprom does with the Euros is their business.