The Russian Federation may be about to make a "Corralito"

[zasad@]

Some of you know about the Argentinian corralito, by which Argentinians, from one day to the next, were not allowed to recover their USD that were converted into "pesos" at the "official rate". They were not able either to get much out the bank (was it 400 a month?).

Well, the recent economic measures taken in Russian Federation by their local despot may end up in something similar. For now:

https://sanctionsnews.bakermckenzie.com/russia-imposes-special-economic-measures-in-response-to-western-sanctions/

Russian exporters starting from February 28, 2022 are obliged to sell 80 % of foreign currency received from foreign trade contracts and obliged to sell 80 % of foreign currency credited from January 1, 2022
Russian residents are prohibited from lending to foreigners in foreign currency
Russian residents will not be able to put foreign currency on their accounts and deposits in foreign banks
Russian residents will not be able to transfer funds to foreign banks without opening a bank account using electronic means of payment provided by foreign providers of payment services
The ban comes into force on March 1, 2022.

A new "package" for locals may be about to come. Bitcoin may be the answer.

You are posting old information.

May, 23rd
The authorities allowed exporters to sell 50% of foreign exchange earnings instead of 80%
https://www.forbes.ru/finansy/466417-vlasti-razresili-eksporteram-prodavat-50-valutnoj-vyrucki-vmesto-80

June 10th
The Ministry of Finance canceled the requirement to sell foreign exchange earnings
The decision concerns both raw and non-commodity exports and applies to export contracts in any foreign currency
https://www.rbc.ru/economics/10/06/2022/62a31eb29a7947f20a821820

The sanctions are directed against Europe. The Chinese and Turks will take a large share of European business in Russia.

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[Ozero]

That is good way to surpass the sanctions isn’t it? Russia is somehow tackling the issues of financial sanctions from all over the world through their careful planning and process of making the Ruble stronger. This could also help their locals to do business at higher confidence since they have strong currency now.

I am not sure how this has any correlation with the bitcoin but assuming the situation Russian federation may allow their people to use it in the want of bringing foreign currencies into ruble through crypto tunnel.

Careful planning to strengthen the ruble exchange rate? Feverish measures aimed at saving the ruble, quite unexpectedly for Russia, led to a completely opposite negative result, since the strengthening of the ruble greatly harms the country's financial system and its industry.

A record number of sanctions have been imposed against Russia. At the same time, thousands of the largest companies in the world, in protest against the aggressive policy of the Kremlin, began to curtail cooperation with Russia. The country's imports collapsed, exports began to decline rapidly.

The disaster was recognized by the head of the Ministry of Economic Development Maxim Reshetnikov, as reported by the Russian media.
Reshetnikov called on the Central Bank to take urgent measures to weaken the ruble, predicting the collapse of Russian industry. He noted that the profitability of a number of Russian export-related industries became negative due to the inadequately low exchange rate of the national currency.

Now I can tell how the issues of international sanctions are being resolved in Russia and how the Kremlin is trying to circumvent them. Putin recently signed a law legalizing smuggling in his country. We are talking about the legalization of the so-called parallel imports. This law gives the Russian government the right to determine goods for which Russian companies will not be held criminally, administratively or civilly liable for smuggling. The list, in particular, included equipment and electronics, weapons, soap, medicines. The list included products from brands such as Samsung, Siemens, Apple, Panasonic, Intel, Asus, Logitech, GoPro and Electolux.
This is the piracy way in which international issues are resolved by a terrorist state.

[kryptqnick]

To be honest, I thought they already have something like corralito. As the op mentions, the 80% selling requirement was introduced on February 28 and additional limits in the spring as well. So heavy restrictions are already available, but I don't think more will follow just because of the technical default. The default is, after all, technical, for Russia has the money but can't transfer it internationally due to sanctions. That means that inside the country, there are funds, and I don't think people will run from fiat much (not after it got stabilized quite well in Russia).

[paxmao]

I think Europe will only need one cold enough winter to get all the renewable energy shit out of its head.

EU bureaucrats have always presented themselves as extra smart, and now they have turned out to be almost the dumbest when it comes to energy policy. It's not just green energy, but that almost 500 million people now live in fear that they will not be able to heat next winter, or that the price of fuel will reach 3 EUR per liter, so they will have to ride bicycles or use public transport.

The utterly failed policy of making so many people dependent on just one country for oil and gas will hit those in power now. Parliamentary elections in France have shown that some radical political options will get more and more space, and Russia is counting on such an outcome. The real war may end in a few months, but the Cold War will last for years and will have far more severe consequences than in the past.

Yeah yeah... when this happens, when that happens, when this when that...

Sure, I can picture Germany, with lignite enough to burn the moon, having "cold" in winter. Count on that.

EU bureaucrats are what they are, but if you want to compare them with the "genius" in charge of the RF Orc army... well... then they are smart.

...

Careful planning to strengthen the ruble exchange rate? Feverish measures aimed at saving the ruble, quite unexpectedly for Russia, led to a completely opposite negative result, since the strengthening of the ruble greatly harms the country's financial system and its industry.
...

Not to mention having to pay Ponzi scheme level interests on debt and savings.

[Poker Player]

the price of fuel will reach 3 EUR per liter, so they will have to ride bicycles or use public transport.

It's ridiculous money compared to income in Europe.
In Bulgaria and Romania and Estonia it would be hard, of course.

And in Greece and Italy and Spain. Also, not everyone in countries like Germany has high incomes. High income earners won't be so affected, obviously but to call it ridiculous money is quite short-sighted because the price of gasoline affects supermarket prices, because the products are transported, and many are wrapped in plastic, many of which are petroleum derivatives.

[VKcams.com]

Italy

Don't worry about Italy, prices are already 2.30. It's practically 3.

[ChrisPop]

Bitcoin certainly looks like a very good solution and somehow of a safe-haven for the russian population. I mean Russia hasn't banned cryptocurrencies, quite the contrary --> they have stated they are accepting payments in Bitcoin from their partners. Fiat is a very risky instrument to store your wealth right now due to political and economic uncertainties. Why would I want to hold Ruble besides covering my monthly expenses when the whole world is against the country's government?

There is one thing I know --> when the state performs major interventions in the economy, the long-term effects are most of the time catastrophic

[Hispo]

Assuming that Rusia is indeed in the way to apply such measures in order to stop the flight of capital off Russia, that means that they are either actually suffering from the sanctions (more than they would like to admit) or they are preparing themselves to live with a cut of their income in the long run.

I assume the second scenario is more likely, keeping in mind Russia still have some economical allies and the price of fuels is high.

I think this is done to maximize the rejection of dollar support. This is Russia's new policy after the freezing of their foreign assets. Now the emphasis is on the national currency and the currency of the allied states. Refusal to pay debt obligations in dollars already speaks volumes. Instead, the payment went in the national currency.

This makes me wonder how much confidence the Russian people have in their currency. This kind of measures have been taken here in Venezuela and in Argentina because the high inflation and loss of faith in the national currency.

Assuming the average Russian citizen still have faith on their currency, could not one clasify this as a way to artificially increase or keep the value of the Russian Ruble against USD and EUR ?

This makes me doubt of the economical support Putin have from the population, to be honest.

[Lucius]

Don't worry about Italy, prices are already 2.30. It's practically 3.

Simple math says that there really is a difference if the price of 1 liter of fuel is now 2.30 EUR because that would mean that for a full tank of about 50 liters, the owner should pay 115 EUR, while at a price of 3 EUR, he should pay 150 EUR. That difference may not seem too big to you, but apart from Bulgaria and Romania that you mentioned, average salaries are relatively low in Greece or Croatia. 35 EUR more for a fuel tank means a lot to someone, especially for those who use their vehicle every day.

Compared to last year, the price of fuel in Russia is more than 50% higher - tanks and military machinery consume too much?

https://autotraveler.ru/en/russia/trend-price-fuel-russia.html

[be.open]

Compared to last year, the price of fuel in Russia is more than 50% higher - tanks and military machinery consume too much?

https://autotraveler.ru/en/russia/trend-price-fuel-russia.html

The increase in the price of fuel in dollars and euros is due to the fall in the value of the dollar and euro against the ruble. If you scroll down a little on your link, there is a graph of the price of fuel in rubles and it has not changed much over the year (AI-95 + 1.27%, Diesel + 9.3%, LPG -19.11%).

[zasad@]

At the beginning of the year, gasoline prices in Russia fell by about 7-10%.
Do you know why wages are so low in Russia?
The lower the costs in Russia, the more profit foreign companies receive, which buy cheap raw materials in Russia.

[yhiaali3]

The suffering of the Russians increases and with them the suffering of the world because of this stupid war on Ukraine. The Russian leaders insist on their stubbornness and continue in this war that has brought ruin and destruction to all. The economic sanctions imposed by the West cause suffering to the Russians. In return, the Ukrainian war causes suffering to the rest of the world, who are suffering in the first place People, not governments, so turning to Bitcoin may be the solution to get rid of these new restrictions that are being imposed and are increasing every day.

[VKcams.com]

The economic sanctions imposed by the West cause suffering to the Russians.

I can't speak for everyone, but in Italy the exporters are sure to be fucked up.

[DrBeer]

Assuming that Rusia is indeed in the way to apply such measures in order to stop the flight of capital off Russia, that means that they are either actually suffering from the sanctions (more than they would like to admit) or they are preparing themselves to live with a cut of their income in the long run.
I assume the second scenario is more likely, keeping in mind Russia still have some economical allies and the price of fuels is high.

This is not an attempt to restrain the outflow of capital, it is made easier - a ban on foreign exchange transactions and that's it - you won't be able to take out much in suitcases, if at all you can take it out.
The problem is the collapse of the Russian economy. All these fakes of theirs that they fed the world with - the second most powerful army in the world, a stable and strong economy, the whole world depends on Russia, etc. nonsense, were on the air so massively and for a long time that they themselves believed in it. But the reality turned out to be much more deplorable - a backward resource economy, a primitive army, which, in fact, was stopped by the small and underarmed army of Ukraine, and not only stopped, but also forced to cowardly flee back to Russia and Belarus! And the economy without a currency - does not work in Russia - they are dependent on Western technologies in almost everything, and if they are sold, then only for currency - no one needs a fake ruble with a fake exchange rate. And you also need to feed and support the collapsing and losing army and security officials (the National Guard, the Ministry of Internal Affairs, the FSB) - otherwise who will protect the miserable likeness of the Kremlin Fuhrer from the people? In a year we will return to this issue, I'm sure everyone will already talk about Russia in the past tense

[darewaller]

Most people may have some hard time digesting the conversation here, well – let me throw some more light into what we are talking about. Corralito was actually the informal name for the economic measures that were taken by the Argentine government to limit the level of cash withdrawals in the country to around 250 Argentine peso in a week. But this in no way did not affect the transfer of money using electronic means, and neither did it disrupt the use of credit and debit card for payments.

it is clear that in order to organize the power of the country's currency and limit the circulation of foreign money. Trying to get people used to it little by little eroding foreign money. Based on the sources above that the agreed date and year, without us knowing it from the start, Russia prepared the ruble financially, followed by the tragedy at the end of February.

At one point, I actually felt that something else was responsible for the strengthening of the rouble. And as a matter of fact, the combination of sanctions, which tanked imports, and Russia’s commodity exports, which were actually boosted by very high and uncomfortable prices, gave the ruble its further upward momentum. Russia also demanded European nations pay for natural gas in rubles, at this point, a lot of things got messy.

But with the aim of wanting to support the currency, the Russian government made a claim of pegging it to 1 gold.

[sovie]

Most people may have some hard time digesting the conversation here, well – let me throw some more light into what we are talking about. Corralito was actually the informal name for the economic measures that were taken by the Argentine government to limit the level of cash withdrawals in the country to around 250 Argentine peso in a week. But this in no way did not affect the transfer of money using electronic means, and neither did it disrupt the use of credit and debit card for payments.

it is clear that in order to organize the power of the country's currency and limit the circulation of foreign money. Trying to get people used to it little by little eroding foreign money. Based on the sources above that the agreed date and year, without us knowing it from the start, Russia prepared the ruble financially, followed by the tragedy at the end of February.

At one point, I actually felt that something else was responsible for the strengthening of the rouble. And as a matter of fact, the combination of sanctions, which tanked imports, and Russia’s commodity exports, which were actually boosted by very high and uncomfortable prices, gave the ruble its further upward momentum. Russia also demanded European nations pay for natural gas in rubles, at this point, a lot of things got messy.

But with the aim of wanting to support the currency, the Russian government made a claim of pegging it to 1 gold.

Heard in my local new that Russian asked the buyers to pay in Ruble. But I am sure USA will not let this happen as the world follows the petrodollar rule.
If the world starts paying in Ruble than surly the Ruble will get strength which is not what EU and USA would want. But whatever the situation is Russian economy will not collapse that is for sure.

[Sithara007]

Heard in my local new that Russian asked the buyers to pay in Ruble. But I am sure USA will not let this happen as the world follows the petrodollar rule.
If the world starts paying in Ruble than surly the Ruble will get strength which is not what EU and USA would want. But whatever the situation is Russian economy will not collapse that is for sure.

Here in India, some of the private companies are already importing Russian crude oil and coal by making the payment in Chinese Yuan and UAE Dirhams. They can't pay the Russians in Euros or USD due to the sanctions. As a result Chinese Yuan is now increasingly being used for international trade involving Russian commodities. Hardly anyone prefer the Ruble right now, because of its volatility. Some of the companies explored the possibility of making the payments using the Indian Rupee, but the Russians were not interested.

[Poker Player]

Here in India, some of the private companies are already importing Russian crude oil and coal by making the payment in Chinese Yuan and UAE Dirhams. They can't pay the Russians in Euros or USD due to the sanctions. As a result Chinese Yuan is now increasingly being used for international trade involving Russian commodities. Hardly anyone prefer the Ruble right now, because of its volatility. Some of the companies explored the possibility of making the payments using the Indian Rupee, but the Russians were not interested.

In other words, the USA is shooting itself in the foot. Who would have thought it. Just to think that Gaddafi was killed for wanting to sell oil in Euros. And Saddam Hussein the same. There you have the weapons of mass destruction.

[tvbcof]

https://dailycoin.com/russia-will-approve-bitcoin-as-legal-currency/

Sweet!  I could use a barge full of diesel and JP4 for my yacht and airplane.  I plan to tour the world laughing at all the cold hungry idiots who got taken by the climate scammers and hit with Biden's energy hikes, food shortages, and etc.

[Sithara007]

https://dailycoin.com/russia-will-approve-bitcoin-as-legal-currency/

Sweet!  I could use a barge full of diesel and JP4 for my yacht and airplane.  I plan to tour the world laughing at all the cold hungry idiots who got taken by the climate scammers and hit with Biden's energy hikes, food shortages, and etc.

This is not accurate. Bitcoin is not a legal tender anywhere in the Russian Federation (including the 22 constituent republics). Just yesterday the Roskomnadzor blocked access to Bits.media, which is one of the most popular crypto news websites in Russia. And the Duma is about to vote on a bill, that will prohibit the usage of Bitcoin for making payments. Bitcoin miners also need to prove that they are converting their mined coins to fiat currency inside Russia (they can only exchange BTC for foreign currency).