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New Czech Putin for the West!
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March
24, 2022,
09:09
PM
Russian President Vladimir Putin has announced that allied countries will have to pay in Russian rubles for the gas they buy.
Russian President Vladimir Putin has announced that allied countries will have to pay in Russian rubles for the gas they buy. Will this be Russia’s retaliation against the West? This news package analyzes that … Following the Russian invasion of Ukraine, Western countries, including the United States, Britain and Germany, announced sanctions that would paralyze Russia’s economy. Russian banks have been removed from the Swift banking system in a bid to isolate Russia from the International Monetary Fund. Thus the Russian currency ruble fell to an all-time low. The value of the Russian ruble against the US dollar rose from 80 to 120. As a result of rising inflation and rising prices in Russia, President Putin held consultations with top officials. Russia will continue to sell gas to non-aligned countries, but has announced that it will have to pay in Russian rubles for gas it buys. Putin announced that the procedures for this would be worked out within a week and that the Russian state-owned company Gazprom would be instructed to make relevant changes to the gas contracts. Russia recently declared 41 countries allies, including the United States, Britain, the European Union and Australia. The EU, which is involved, buys 40 percent of its gas from Russia. Gas prices, which have already risen in the European Union, have risen by more than 30 percent since Putin’s announcement. The value of the Russian currency against the US dollar has risen to 95 rubles. Experts say Putin’s compulsion to buy gas in Russian currency is a strategy to boost the value of the depreciating Russian ruble in order to stabilize Russia’s foreign currency reserves. Britain and the European Union have already refused to agree to a US embargo on Russia’s oil and gas exports. Having already contracted to trade in euros to supply gas, the question now arises as to whether a change in the ruble would be a breach of contract terms. Italy, a member of the European Union, has said it does not want Russia to trade in Russian currency. The Polish side claims that the offer to pay the Russian ruble is a breach of contract. With the European Union as a whole dependent on Russian gas, Putin is seen as armed with Russia’s energy supply.