Ed Note – Amarynth
The video that we could obtain, was only a snippet and that is posted here: http://thesaker.is/putin-sets-ruble-for-gas-payment-deadline/
The full address is worth taking a look at, as Mr Putin in no uncertain terms told the west and Europe what they are doing. I caution that this is a machine translation, so, fine parsing of words may not be productive. This is the gist of what Mr Putin said.
As the Kremlin website is more down than up, this machine translation came via a poster on Moon of Alabama. We thank you for grabbing it, karlof1 | Mar 31 2022 16:33 utc | 94
Today I have signed an Executive Order that establishes the rules for trade in Russian natural gas with so-called unfriendly states. We offer counterparties from such countries a clear and transparent scheme. To purchase Russian natural gas, they must open ruble accounts in Russian banks. It is from these accounts that payment will be made for gas delivered starting tomorrow, from April 1 of this year.If such payments are not made, we will consider it a failure to fulfill obligations on the part of buyers – with all the ensuing consequences. No one sells anything to us for free, and we’re not going to do charity either. That is, existing contracts will be stopped.
I would like to stress once again that in a situation where the financial system of Western countries is used as a weapon, when companies from these states refuse to fulfill contracts with Russian banks, enterprises, individuals, when assets in dollars and euros are frozen, it makes no sense to use the currencies of these countries.
In fact, what’s going on, what’s already happened? We supplied European consumers with our resources, in this case gas, and they received it, paid us in euros, which they then froze themselves. In this regard, there is every reason to believe that we have supplied part of the gas supplied to Europe virtually free of charge.
This, of course, cannot continue. Moreover, in the case of further gas supplies and their payment under the traditional scheme, new financial revenues in euros or dollars can also be blocked. Such a development of the situation is quite expected, especially since some politicians in the West talk about it, speak publicly. Moreover, it is in this vein that the heads of government of the EU countries speak. The risks of the current state of affairs are, of course, unacceptable for us.
And if you look at the issue as a whole, the transfer of payments for the supply of Russian gas to Russian rubles is an important step towards strengthening our financial and economic sovereignty. We will continue to consistently and systematically move in this direction within the framework of the long-term plan, to increase the share of settlements in foreign trade in the national currency and the currencies of those countries that act as reliable partners.
By the way, you have probably heard that many traditional suppliers of energy resources to the world market are also talking about diversifying settlement currencies.
Let me repeat once again: Russia values its business reputation. We comply with and will continue to comply with our obligations under all contracts, including gas contracts, and we will continue to supply gas in the established volumes, I want to emphasise this, and at the prices specified in the existing long-term contracts.
I emphasize that these prices are several times lower than the current quotes on the spot market. What does that mean? Simply put, Russian gas is cheaper energy, heat, light in the homes of Europeans, an affordable cost of fertilizers for European farmers, and therefore, food in the end. Finally, this is the competitiveness of European enterprises, and hence the salaries of Europeans, citizens of European countries.
However, judging by the statements of some politicians, they are ready to neglect the interests of their citizens, if only to please their overseas master, the suzerain. Some kind of populism inside out: people are encouraged to eat less, dress warmer to save on heating, refuse to travel – and all this supposedly for the benefit of those people from whom these voluntary deprivations are demanded for the sake of abstract North Atlantic solidarity.
Such dubious approaches and actions in economic, energy, food policy on the part of Western countries have been observed for more than a year.
By the way, the food crisis will be followed by another inevitable, another wave of migration, including primarily to European countries.
Nevertheless, step by step, decisions are being made that push the world economy to a crisis, lead to the severance of production and logistics ties, lead to an increase in global inflation and increased inequality, to a decrease in the well-being of millions of people, and in the poorest countries – I have already said this – to the tragedy of mass starvation.
Naturally, the question arises: who is responsible for this? Who will be responsible for this?
It is clear that the United States will again try to solve its problems – namely its own problems – at someone else’s expense, including launching a new wave of emissions and budget deficits. It has already grown exorbitantly, and in the leading European economies the record is broken by inflation, and in the United States. And at the same time, they are trying to blame their mistakes in economic policy on us, they are always looking for someone to blame. It’s pretty obvious, we’re seeing it.
I would like to add that the United States will try to capitalize on the current global instability, as it did during the First and Second World Wars, during its aggressions against Yugoslavia, Iraq, Syria and so on. Global markets are falling, and the value of shares of companies of the American military-industrial complex is only growing. Capital is flowing into the U.S., depriving other regions of the world of development resources.
As a result, Europeans are not only forced to fork out, but also, in fact, with their own hands to undermine the competitiveness of European companies, to remove them from the global market. For Europe, this means large-scale de-industrialization and the loss of millions of jobs, and against the background of rising prices for food, gasoline, electricity, housing and communal services, there is also a radical decline in the standard of living of citizens.
This is the price that the ruling Western elites offer to pay to people, as I have already said, for their ambitions and short-sighted actions both in politics and in the economy, including for the economic war that they are trying to unleash against Russia, or, one might say, have already unleashed.
It didn’t start now, it didn’t start in the last month. Illegitimate sanctions and restrictions have been imposed against our country constantly, for many years. Their goal is to restrain Russia’s development, undermine our sovereignty, and weaken our potential in production, in finance, in technology.
Let me repeat that all these sanctions were prepared in advance, they would have been introduced in any case, I want to emphasise this. In fact, these are sanctions for our right to freedom, for the right to be independent, for the right to be Russia. For the fact that we do not want to dance to someone else’s tune, to sacrifice our national interests and traditional values.
The collective West is not going to abandon the policy of economic pressure on Russia. Moreover, of course, he will look for new reasons for sanctions, namely pretexts. Therefore, it is not worth counting on changing these approaches, at least in the near future.
In this regard, I would like to ask the Government, the Bank of Russia and the regions to ensure that the sanctions pressure on our country, as it was in previous decades, will continue when organising systematic work to develop the economy and its individual sectors. That is the objective reality.
What do I consider important to note here and I ask you to draw the attention of all colleagues to this? Considering the situation in each specific industry, sphere, it is necessary to focus not only on overcoming the challenges of the current year, but also to build long-term development plans based on the internal capabilities of our economy, Russian science and education system. We must rely primarily on private business initiative and healthy competition, strive to maximize the load of our enterprises, create new competencies and increase Russia’s global competitiveness as a whole.
At the same time, the key indicators of the effectiveness of economic policy for us should be the preservation and creation of jobs, the reduction of poverty and inequality, improving the quality of people’s lives, the availability of goods and services. It is with these requirements in mind that we discussed the situation in the construction and housing sector last week.
Parabéns à Rússia coletiva.
Congratulations to collective Russia.
Thank you Saker for printing this. This and the Lavrov interview you published earlier are critical to understanding.
Straight talk from Pres. Putin. Of course none of this will be considered by collective west.
If such a speech does not want the Russians to raise their flag and whistle the national anthem, then nothing will.
Straight plain language and no threaths made. Just making clear the pricetag of acting hostile towards Russia.
Living in a nation where politics are equal to Muppet Show, with well picked idiots to choose between in the ” flagship” democracy of the world, simple logics, national leaders that works for THEIR nation, and not the globalusr scheme, this sort if gets to my heart.
And I put five cents on this speech will even raise the moral on the frontline of the intervention in Ukraine.
This is a huge step for mankind against those evil whom try to control and enslave the world.
Even if the damage Europe and others might inflict on themselfs by not taking this serious either, the long trrm effect might come put good as one steps up the game against thiefs and tyrrants.
Non-payment is a breach of contract, end of story. The West seems to think it it above the law. Russia will only benefit from ending current contracts in order to be able to negotiate new contracts at current rates. Business is business after all. At least when the West profits. As someone who is part of the West I find all of this appalling! Putin is painted as a liar, as unreliable, as a bully and a brute. Methinks the West doth protest too much and hasn’t peaked into a mirror for some time.
German news reported yesterday that Putin clarified that European countries can in fact pay in US$ and Euro, as long as they pay into a Gasprombank account where the funds will be transferred into rubles. Either way, incoming payment will be received rubles, no matter how the Europeans dress it.
German politicians also discuss introducing car-free Sundays, how people can reduce energy consumption, that handing out money to cover higher energy cost will not do anything to curb energy consumption, etc. An early warning for the energy emergency plan has been issued. In case of a gas shut off, industry will be shut down first, which will result in the loss of over half a million of jobs, many of them highly qualified jobs, and a sudden shut off can also lead to irreparable damage of some equipment, ie in glass production. Despite all of that, it is all Putin’s fault. The ignorance is unbelievable and unbearable. Pay your friggin bills and shut up already.
“Either way, incoming payment will be received rubles, no matter how the Europeans dress it.”
(1) this is a temporary mechanism via Gazprombank. Maybe a few months? Soon they will need to do the converting themselves or send the gold.
(2) all incoming proceeds remain within Russia. None will be sent as foreign currency to be deposited in Western central banks again.
(3) bye bye Swift. This new system circumvents it altogether. They deposit in Russian banks, in Russia, which will convert it (for now) for them on Russian exchanges, then hand the Ruble proceeds to the Russian Central Bank. No more grubby AZE middle-men eyeballing the money flows on Swift.
(4) say hello to the Russian interbank messaging replacement for Swift: the System for Transfer of Financial Messages (SPFS), set up by the Russian central bank in 2014. Thank you EU for helping us beta-test it before we roll it out to the rest of mankind.
(5) this is only Phase 1 with gas. Russian Big Agriculture (and every Russian commodity) is lining up for the Ruble-only system..
As i understand it Is that Europeans need to buy rubles at a Russian bank (Gazprom or central bank ?) I assume with euro´s / usd. So the central bank of Russia will end up with this euro/usd as there reserves. What is different in that situation than today ? When europeans companies pay for the gas in euro’s / usd ?
It will be different if Europeans need to take out a rubble loans at a Russian banks and with this borrow money they buy the gas. The russina than in return start to buy with this rubles German cars for example. So german companies need to open ruble accounts. NB. I understand that this new way is to make sure Russia gets paid.
When US$$s and Euros are exchanged for Rubles, no matter where and how, the amount of Rubles will be increased, but without the mechanisms of quantitative easing or just for the sake of printing more Rubles. This is real creation of money in exchange of tangible goods (only oil and gas backed Rubles are created). In other words, Russia is increasing its real money supply and thus becoming richer. This is not discussed anywhere.
At present before this new rule. europeans bought directly with eur/usd gas at gazprom. Gazprom needs to pay its people in rubles so it exchanges part of the eur/usd it receives in ruble. It must also put its suppliers in ruble so more is changed in ruble. Now the governement forces gazprom to exchange all in ruble. (okay the europeans need to do it for gazprom) (okay gazprom seems to have a bank too so basically its still sits on this eur/usd it does not need to spend imediately It has probably debts in eur/usd which it needs to pay of.) The workers and supplier who received the ruble can go with their rubles to a bank and exchange them to eur/usd to by for example a BWM or mercedes. At that moment the rubles in circulation decrease again. This is how it work now too. So it temporary increases rubles in circulation. Causing maybe inflation :D in russia. All depends on what gazprom does. Beteen gas company and bank. NB. I understand that this new way is to make sure Russia gets paid.
BMW or Mercedes are no longer selling cars in Russia. Regardless, Russians have always paid local goods in Ruble, received their salaries in Ruble. In the 1990s that may have been different. But in recent years, it would most certainly have been that way. Never mind that the whole media hoopla about this is artificial hysteria. When the Canadian Dollar loses against the US dollar, Canada doesn’t suddenly fall off this earth. Politically or economically. Nor does the US fall into despair when it loses against the Can dollar. And over the past few decades those two currencies have lost and gained 30% against each other several times. And it was no news. Other than that cross border shopping got cheaper for one side at one time and then for the other side at another time.
Mercedes and BMW were produced in Russia, where all production processes were paid in Ruble. Except for things imported. Actually, physically imported. Russia has worked on limiting the need for imported goods since 2014. Therefore very little money leaves on the exchange for imported goods that require payment in US $ or Euros. But the process you just described can and will be applied to Europe and other western countries that now have to pay for the goods they import into their country from Russia, such as oil and gas, in foreign currency, in this case Ruble. Hence devaluing their own currency. On top of that, European countries cannot print Euros like the US can. So it hits Europe harder than the US.
Btw, when you buy an American car in Europe, you pay for it in Euros, in the local currency. In Canada, you pay for it in Can dollars, the local currency. In Russia, you buy a car with Rubles, the local currency. No matter if it is imported or produced locally. Have you ever paid in a foreign currency in the country you live in? No. You pay in your local currency.
First of all BMW and Mercedes was just an example can be overprized gucci bags. Russians direct or indirect use the eur/usd they receive to buy goods en services. Secondly forexample in Sout america you can buy things with dollars at the shop. Re your claim. ”Russia has worked on limiting the need for imported goods since 2014. Therefore very little money leaves on the exchange for imported goods that require payment in US $ or Euros.” So soon russia does not have to export nothing anymore ? Or it continue selling gas and gets eur/usd and keeps pilling them up that at the bank while they are slowly inflated away ? Europeans would certainly love that.
Now lets be really evil. :) In this new situation gazprombank becomes the owner of this eur/usd. That will say administrative they become the owner of some digital numbers in a computer system. Let say Europe and Russia do business like this from now on. Till Europe find other gas suppliers. After that it simply cancels this digital administrative eur/usd of GazpromBank and whala they stole a part of the gas supplied :D :D Its all administrative in computer systems. Can be done in a second. They can dress it up as a environmental penalty on Russia because they don’t hurry up with green energies. Or for jailing Navalny. In other words it looks like Russia is still in bed with the rest of the world. Till they really close the gas off from Europe and i see mass starving in Europe in think what we see is all a clown show. NB I know people die. That is very sad.
The sender has no administrative access to gazprombank computers, so no. Or can you cancel the text you just wrote above? No. You don’t have the administrative rights to do so. Never mind that, yes, it would be theft. There are international courts for that. Navalny is no justification for theft. Stop thinking. Yes, clown world.
End of replies to you.
Its correct that the sender (but we must talk of the western governments who will cancel them) have no access to the gazprombank administration. But the west can declare them null and void. So other countries can not accept them anymore as payment. If other countries accept them the west can than declare that country than in non compliance and start sanctions against that country. So far i think the west will not go at this moment but it can. Navalny in your eyes maybe can not be a justification But western politicians are a different kind of species. Why by the way is russia delivering gas to a bankrupt europe ?
You can be certain that Gazprom Bank will take good care to convert the Western money to Rubles by buying on the FX, and then transfer those rubles to Gazprom proper BEFORE crediting payment to the buyer.
If the foreign currency is magicked away at any time before that happens, then the EuroClowns have sanctioned themselves, or have themselves been the victims of sanctions by the U.S.
Tough luck on them!
Rubles are not created in this process. This process simply increases the demand for Rubles, and decreases the demand for Euros, which makes Russia richer and Europe poorer. As usual when Europe buys Russian gas.
The problem was sanctions blocked the normal operation of money trading, so Putin created this bypass of the sanctions, and life returns to normal.
After the fall of the Soviet Union determined by the Russian Constitution written under the guidance of erstwhile American economic advisors, the Russian Central Bank is privately owned (likely the Rothschild banking dynasty) and can only create rubles by converting US dollars. Now that the assets of the Russian central bank have been frozen by US sanctions, Russia is not able to issue new rubles.
But by using Gazprombank as the receiver of Euros paid for exported gas from Russia to the EU, new rubles are created digitally, which are then able to be spent within the Russian economy. What happen to the incoming Euros is another matter. Will they be deleted back out of existence or saved for a rainy day ?
Distinction needs to be made between GaspromBank and Gazprom the company – 2 seperate entities. So yes, open an account with GazpromBank, put in your dollars and Euro whatever, Bank then converts to Rubles and then the money pays gets sent to Gazprom Gas Company to pay the bill.
Ok.. and then what does Gazprombank do with those euros/usd’s?
They keep them, ie for payment in USD or Euros. If the money can flow one way, it can flow the other way too. One reason why Europe is balking at this option. It makes the sanctions irrelevant.
It also means that Russia receives both, foreign currency, and their own currency back. But this time Russia remains in control of the foreign currency they receive. Another way to circumvent sanctions since these reserves are now beyond the reach of the West. Well, Euros anyways. US claims jurisdiction over all USD transactions worldwide. So companies who have contracts in USD may still be reluctant to fork over USD.
As far as I know Grazprombank is not affected by sanctions. Not yet, anyways.
The big difference is that the money stays in Europe. The value goes to Russia. All the volume of Eur/Dolar doesn’t go to Russia anymore. It means a little bit more inflation in the west, or more money with less value. Very soon or if not already, the fiat money has not value in Russia. Gazprom does the change to Russia with backed by gold Rubles. Is like Gazprom take the payments in Euros/Dolars and pays Russia with already bought rubles, then it buy gold with euros/dolars e buy more Rubles. That’s a gold machine.
The largest chemical company, BASF, has finally spoken out – Germany’s industrial economy is being ruined, even a short Russia gas stoppage will be disastrous.
Looks like that is US/British policy, since WWI – never let Germany and Russia cooperate.
This fossil British Mackinder geopolitics is a real disease – victims have a Woke unblinking (even Blinken) stare.
When people snap out of the hypnotic trance – stand well back! The Mackindergarten tantrums will be deafening!
bonbon……Here is the article the German CEO of BASF was warning German’s about …https://www.zerohedge.com/energy/basf-ceo-warns-germany-total-collapse-if-russian-gas-supply-cut
Those big industrial processes, like a nuke plant or refinery, are quite efficient when they are up and running but they have a lot of ‘inertia’ to them — they can’t be switched off and on like a light.
Interruptions in their gas supplies will force BASF and similar industries to idle a lot of their stuff. . .
Perhaps Russia will soon be selling fertilizer, pharmaceuticals, polymers and so forth, for Rubles.
This seems to be the anglo-saxon game plan, throw continental Europe back to the 1930s and create 400 million Nazis for the Eastfront.
Cannot work – just as Russia has in every family a relative who died in the Great Patriotic War (WWII) with 28 million casualties, Germany has an Ostfront relative.
Just look at any village church – regular remembrances of WWI, WWII casualties.
Maybe forgotten are Napoleon’s Grand Armee with 250,000 Germans who got a one-way ticket to Moscow in winter – Hitler said in Paris that Napoleon was his vorgänger – predecessor.
I can see the collective west next move.
Blame everything that went bad on the Russians and then move their country into quasi state of wars with Russian to channel their angst, fear, and disappointment.
Revenge is a dish people of taste prefer to eat cold.
Revenge is cannibalism, hot or cold. Those who engage in it are eating themselves, whether they understand it or not. Universal law is unavoidable. Do no harm, take no sh!t. Tough to do both, but trying to learn how is evolving. Russia is doing OK so far on the macro level. Engaging in revenge is devolution. You become the monster you thought you were fighting.
If you defend yourself and create your liberty by creating its death, it chose that, because your liberty is yours. And anything that thinks your liberty is theirs to give or take, is about to learn a hard lesson. The same lesson someone who slays a monster, out of revenge, is about to experience. Revenge is offense, not defense. Revenge is death to all who engage in it, hot, cold, doesn’t matter. Its just repeating. A lesson that will repeat over and over until the lesson is learned.
Great statements like this from a great leader like Mr. Putin must be driving the increasingly impotent Satanic beast into an apoplectic rage. Evil cannot stand a good example, and Mr. Putin’s measured actions and thoughtful, reasonable words – delivered in his usual calm, cool and collected manner (in contrast to the dishonest, emotional, unhinged, shrill ad hominem rhetoric of Western “leaders”) – no doubt come across to the Satanists as someone scraping their fingernails across a chalkboard. Mr. Putin is certainly “[heaping] burning coals on [their collective] head.”
This methodology leaves GaspromBank the proud owner of Euros. But what can they do with them?
Who will buy them and with what currency ?
China, to name just this one.
China’s exporters of consumer goods delivered to the US are paid for in digital Federal Reserve Notes, with which they buy interest bearing US Treasury bonds, but they are gradually reducing the amount now at around $1 trillion, since they do not wish to crash the US dollar for obvious reasons.
At some point China will insist in being paid in Yuan for its exports, just as Russia will increasingly demand rubles for its oil, grain, and raw materials such as Nickel, Aluminum and titanium.
Russia will use these funds to send them back when it comes time to make Euro or USD payments. The West cannot refuse those payments. Beaten at their own game.
Goodness folks … the Euros get exchanged for Rubles. In other words, they get consumed – they purchase Rubles.
Pay Euros, press the button, out comes Rubles, despatch gas.
Not buy a chocolate and out comes your money and a chocolate. Only the chocolate comes out, your money is paid, or used.
But to buy rubles one must first buy gold, then use the gold to buy rubles at the ever changing gold/ruble rate.
Sure right now its 5000 rubles/gram of gold, but if that were to slowly drop or include different commodities, the dollar ratio drops to the uncles unacceptable for them level, and unaffordable for us in depreciated U.S. $, leaving them only the war cards and high prices and empty shelves for the citizens.
But, tough luck on them, sometimes you get what you asked for.
Not necessarily Alabama. It is really the simplest of transactions. If you buy Rubles with gold, you get Rubles, not gas.
Anyone who wants euros and can pay for them in a currency that the GazpromBank FX team want. So Turkey might buy euros for yen which GazpromBank can sell to the Central Bank for rubles etc etc etc.
In the future European gas companies will probably do what all massive companies do – buy rubles on the ForEx exchange for the best price they can get, then use them for scheduled payments into their Russian ruble accounts. It just doesn’t usually make commercial sense to exchange your currency on the date of payment (when the exchange rate may not be in your favour).
What does “gas for rubles” mean?
Three things to note:
1) Russian companies will no longer get Western “hard” currency. It is now all confiscated by the state. Companies can only own the “less valuable” Rubles. (Almost like in Soviet times.)
2) All transactions happen under Russian jurisdiction. The West cannot block or sanction accounts.
3) The rubles-for-gas requirement applies to old Euro/Dollar nominated contracts. All of them have long-term pricing that is far below spot or market prices. If Western buyers default on payments, it frees Russia from the old obligations and pricing. Western customers will have to buy their gas from the spot market at triple the price.
“Hard” currency is a myth. Especially if it has no longer any value to those who possess it. If my business holds USD in a USD denominated account, then that only works as long as the bank is able to offer this option. In case of sanctions that make it impossible to have a USD account with a bank, then my business can no longer make transactions out of such an account. I could still transfer funds, but would have to be subject to an exchange rate at some point during the transaction. The only reason to have ‘hard’ currencies is to avoid losses due to exchange rates and to speed up payment. Even if you are in a hard currency country yourself. An EU business that has a lot of USD payments may keep USD accounts just for the sake of convenience. Before the incursion the ruble had been pretty stable for some time, so it hasn’t been a country where holding on to hard currency because your own currency is on a constant roller coaster.
Also, there is no talk about hard currency being confiscated by the Russian state. The average Russian company can hold on to foreign currency until this blows over, but have no obligation to surrender that currency to the state. The energy giants are partially state owned in Russia. Like Germany owns part of Deutsche Bank or Deutsche Bahn, the German rail system. Nothing like Soviet times. Stop putting out rubbish like that.
The Ruble for Gas decree forces the European customer to admit the Ruble is money with the same (better is too much to handle) status as the Dollar or Euro. Or it forces them, based on their foolishness, arrogance and pride, to forfeit gas and oil deliveries. What will the Europeans do?
Damn, he’s good! Thanks, Amarynth.
I read Putin’s remarks and feel a calm confidence that the world *will* be made right again. I read my government’s [US] statements and recognize that here the lunatics have truly taken over the asylum.
Years ago — during the Dubya regime — I referred to the NeoCons as NeoCoNazis. I’ve never doubted that characterization, which perhaps explains why this government so enthusiastically supports Ukraine’s own Nazis. “Birds of a feather …?”
Thanks Amarynth and Karlof1 to put your efforts in sharing this. Don’t expect it to be broadcasted in the MSM, but we’ll make damn sure that we will share it in our surroundings. I will, at least.
What I’ve read so far in the western media, if any, is that the RF wants to be paid in rubles for their gas. What’s maybe more important imho, is:
“To purchase Russian natural gas, they must open ruble accounts in Russian banks. It is from these accounts that payment will be made for gas delivered starting tomorrow, from April 1 of this year.If such payments are not made, we will consider it a failure to fulfill obligations on the part of buyers – with all the ensuing consequences.”
In fact it states that paying via non-Russian banks is a no-go while considered unreliable (with good reasons), and then realize about what kind of cash flow is extracted from western financial systems, with more to follow when other nations and businesses realize ‘gee, now that is something’, while financial extortion is the norm here, just read John Perkins.
Grabbing some ships of oligarchs and broadly brag about it is not really going to help here, is it?
Holy mother of Jesus I wish we had leadership like this that at least talks about being a servant of the people. Sometimes I wish our cloning labs would create a pack of Sabre tooth tigers and let them loose in DC.
What happened to the new basket of currencies trading standard that Russia, China, and the Stans were supposed to present in preliminary form around now as an alternative to trading in the dollar? There was an announcement a couple of weeks ago forecasting a preliminary outline for the end of the month. Any word?
Putin’s bigger plan?
I have a hunch that Putin has a larger objective – something Russia has wanted for a long time – a friendly relationship with Europe. European countries are witnessing the fact that NATO can do nothing for them. Putin has demonstrated military weapons in the Ukraine unmatched by anything NATO has. And he has matchless economic weapons. Putin can bring Europe to its knees with the turn of a valve on a pipeline, and Europe depends on Russia for other important commodities, including food. The sanctions gave Putin justification to insist on payment in roubles by “unfriendly nations” for Russian gas. Roubles are to be had in quantity in the end only at the Russian Central Bank, with all that implies. Also, Putin said that he would “start with gas,” indicating that soon roubles only would be accepted for other commodities.
The “unfriendly nations” most directly affected by roublization are the members of the European Union, except, perhaps, Hungary, which seems to be charting a less unfriendly relationship with Russia. Sooner rather than later, ordinary people will notice that Putin is not bombing the hell out of Ukraine, that he is being careful to spare Ukraine’s citizens and its infrastructure, that the Azov brigade and other Nazi elements are a real threat to Slavic Ukrainians and deserve extermination, and conclude that the Russian Bear is defending itself, not attacking its neighbors. This perspective will be acknowledged by politicians in the respective EU countries as elections approach. My guess is that the cost of roubles will noticeably increase the price of essential commodities in the EU, leading wiser heads to conclude, from just a practical perspective, mind you, that being a nation friendly with Russia has significant benefits. Individual European nations may want to attend to this sooner rather than later, before next winter, for example, and will not want to wait for instructions from Brussels. I am sure Russia would prefer to deal with individual countries as this plainly undermines the EU. Moreover, friendly relations with Russia obviate the need for NATO. All in all, a win-win for Europe and Russia.
But not so much for the US. It will employ all measures to prevent any thaw of European relations with Russia. But in simple fact it cannot replace the natural gas and other commodities supplied by Russia, so it must find other means to maintain the “unfriendliness.”
Thank you, but history says otherwise. It is more likely that a new fascist Europe will re-emerge based on a genocidal rage and the never-extinguished Crusading instinct (once Russian countersanctions start to bite and hunger starts). The Anglo-Americans will stay on the side (as they always do) and let a German-led Europe fight Russia. Why do I think this?
Anglo-Americans love money more than they hate Russia. As evidenced by the Teutonic knights, Swedes, Napoleon, Hitler’s EU Reich and its modern reincarnation, this is not the case with the “Europeans” – however many decent people claim otherwise on this site.
Well said. Europe has had a generation to decide on further vassalage to Anglo-American empire or friendliness with an integrated Eurasia. From Iraq to Libya to Syria, the EU must have decided on the former even before collapse of The COVID narrative necessitated the full psyop treatment for The Ukraine as the next narrative. Pauvre de Gaulle; he tried with l’argent and l’OTAN. (The London Gold Pool collapsed and then the international gold window for USD was closed after France asked for its gold and stepped out of NATO’s military structure).
Straight from the propagandist’s mouth (the radio free system), this description from 22 years ago now(!) of the two sides when Iraq was looking to sell oil for euros (instead of dollars) could practically be used as is today:
“One camp, led by the U.S. and Britain — a country also outside the euro zone — wants to maintain strict trade sanctions on Iraq until Baghdad proves it has no more weapons of mass destruction.
The other camp, led by euro-user France — along with Russia and China — favors easing the sanctions on humanitarian grounds while still pursuing disarmament.”
I don’t mean to hog the thread but “vassalage” is wrong in my opinion. Their entire history (give or take several exceptions) is about conquering/destroying Russia. It is a mistake to treat the EU Reich as a well-meaning but impotent slave. They are as evil as any of their previous incarnations. Even De Gaulle was not “pro-Russian” – more anti-Anglo.
Ken, I don’t disagree much and I think that’s insightful and gets right at what I appreciated about the combo of your and Zed’s comments. The hypothetical of what would happen if USUK weren’t part of the equation preventing a thaw in relations? Is DC the root problem, or does Europe itself drive the anti-Russia evil?
At any rate. the impotent part may be more important than the slave part anyway.
I agree. There is an deep seated underlying hatred of russians in Europe, I would say there is even still underlying hatred of slavs in general … although this has as of yet not been allowed to surface. Thinking about it I think actually there is hatred of everybody not like ‘our selves’ … that would include all imigrants.
When the economy goes in the toilet, and Ali has a job but Bob don’t … we will see the genuine level of ‘tolerance’.
That speech sounds like the end of the Bolshevik revolution.
“…if only to please their overseas master, the suzerain.”
How intertesting to see that obscure but very apt word, spoken by Putin himself! I have thought for many years that “the West”, especially the Europeans, are like a group of suzerain colonies beholden to their masters in DC and/or Tel Aviv.
Russian history can teach you all about suzerainty.
Interesting development in light of this is the announcement by Medvedev that Russia “will not be supplying food or grain to any of the unfriendly countries”.
thanks saker & karlof1. if only it was published in the eu & us. apparently germany is considering nationalizing rosneft & gazprom. it’s like occupying your local mercedes dealership & imagining you own the factory. small wonder putin, lavrov & soigu are so pointed & direct now.
My thanks at this point for Saker for allowing me to read this speech by Mr. Putin with them in such clarity. I had tears in my eyes when I read it, no hatred, no aggression in Putin’s words, only the purest reality of truths, what self-control after all the humiliations inflicted on Russia and its people.
But it must be said that it was not just a virtual slap in the face that he gave to the Western fools, it was a hammer blow in the face, it won’t do much good, but it is a lot to think about, especially for the people.
April first, the gas is still flowing to the EU. When will Putin turn off the tap ?
Remember Floyd George? Buys a product with fake money. Cashier chases after him, offers no cops if we undo the exchange. George don’t wanna play. Heap of trouble.
USD: real money, but maybe you get “frozen”. Now the “hard” currency don’t look so safe. AUD’s going great, for now.
This is a strong, lucid, very welcome and extremely important announcement to the russian people and to the world. I can’t understand the way the stock markets are rising given this context (apart from it being a complete scam…)
I think the following parts (at the end of the announcement) are especially important and noteworthy:
⦁ “… it is necessary to focus not only on overcoming the challenges of the current year, but also to build long-term development plans based on the internal capabilities of our economy, Russian science and education system.”
⦁ “We must rely primarily on private business initiative and healthy competition, strive to maximize the load of our enterprises, create new competencies and increase Russia’s global competitiveness as a whole.”
⦁ “At the same time, the key indicators of the effectiveness of economic policy for us should be the preservation and creation of jobs, the reduction of poverty and inequality, improving the quality of people’s lives, the availability of goods and services.”
I give my strong support to Russia. May it be an inspiration to other countries around the world to break the shackles and pursue the well being of their citizens.
🇷🇺🇺🇦⚡APPEAL TO THE RESIDENTS OF THE SOUTH-EAST, especially Donbass (living in the territories controlled by Bandera)
We always say what we think is the truth, no matter how hard it may sound. Today we urge you to leave your homes and go in any safe direction.
We think that the battle for the liberation of Donbass will be hard, the Nazis will hide in the cities and will hide behind the civilian population. It is necessary to wrest this trump card from their hands. We admit that the most modern types of non-nuclear weapons can be used against the Bandera people who have settled in urban areas. There may be casualties among civilians. The best solution is evacuation
In this post, we are not joking, and we consider it important to warn as many people as possible about the impending danger. Please take care of yourself and your loved ones and move to a safe place!
You don’t even say where this comes from. I’ll give you awhile to say that.
If you don’t say, you are just a gasbag pushing fear! Taking other people’s work! And in this case, it is critical.
Say! Say where this comes from!
This article explains it all.
Germany still pays in Euros. Germany gets gas and Russia gets paid through a Russian bank, Gazprombank, instead of a Western bank. In effect, the foreign currency that Russia receives for her gas can now be kept internally and cannot be frozen..
Russia can get round other sanctions by paying for them using these internal foreign currency reserves via friendly nations.
Pegging the Ruble to gold is probably more significant.
Essentially with this move the ruble has just been pegged to black gold – oil and gas. It is a commodity based currency now.
President Putin is exactly correct on how Western European, (and Africa, Latin America, etc.) are beginning to be impacted by increased food prices, gas, electricity.
It’s already happening in the US, but for different reasons. Since this is the centralized point of “Capitalism,” our country is experiencing very high food prices, along with natural gas, and water bills. This is because we have very wealthy monopolists who govern/control what is and what is not available in super market shelves; ditto for the monopolists who own natural gas companies, along with our water utility bills. ALL of those markets are solely owned by Super Wealthy privateers.
This is very unlike most countries elsewhere in the West. In the US, we have *no* independent grocery stores,
*no* independent clothing and restaurant stores. All such stores are “chain stores:” food, clothing & resturant “chains” owned by a select few people called “the 1%.”
They could care less if the whole US population of millions starved to death. And that is what is coming.
Thank God for Putin. Always an educational pleasure the read his speaches.
Thanks, Saker, for making this masterpiece available.
I R R E P A R Á V E L. Parabéns sr. PÚTIN.
I R R E P A R A B L E. Congratulations Mr. PÚTIN.
Finalmente da-se partida a um basta de mais de dois séculos das ações piratas-milicianas comandada pelo império anglo-americanos.
Grato Pepe por nos levar a caminhos de mídias, como está, fora da visão OTAN.
MOD: Please do as Saker required and provide your own translation before posting. Moderation is too busy these days to always do that for people.
Finally, the end of more than two centuries of pirate-militia actions commanded by the Anglo-American empire begins.
Grateful Pepe for taking us down media paths, as is, outside the NATO vision.
Unless euros are worth something to Gazprom Bank, Europe hasn’t paid for its gas – Gazprom Bank has. What does Gazprom Bank do with the euros?
As long as Gazprom Bank has the legal authority to create rubles of equal value, and pay Gazprom with the proceeds, it really does not matter what happens to the Euros it receives, since the EU no longer has access to them.
Repay bonds so Russia does not default on them?
Thanks Saker and Karlof. Another gem from VVP. Both Russia and China are consistently professional in their diplomatic communications. But without this restraint, they might wish to shout to Europe: “Over Here You Fools!” With Here being the Eurasian Integration. On offer would be security, win win trade and commerce agreements, peace and prosperity, and sovereignty. Or they can continue to remain under heel of the US boot, and as Martanyanov states become America’s lunch.
Reading the comments, I see the main focus is on the emerging monetary relationship between the EU and Russia, but zoom out a little. With sanctions in place, and the EU still buying Russian energy, Russia gains two things. 1. it accumulates Euros (and to a lesser extent dollars) which it can use to defend its currency. 2. By running a trade surplus with the EU, Russia can run a trade deficit with the non-aligned world, thus stimulating growth in those nations.
So, if the non-aligned world runs a trade surplus with Russia, where does that surplus go? Why, into the Russian bond market of course, which then becomes collateral for development loans, thus breaking the IMF stranglehold on the developing world via predatory lending. This will also encourage Russian investment in those nations, as their credit will be guaranteed and their currencies stabilized via this relationship. Basically, this lifts the non-aligned world up at the expense of the West, which is poetic justice writ large.
If managed correctly, it will be a major wealth transfer from the West to the non-aligned world. Not so much a Great Reset, as a Great Levelling. Here’s hoping Russians can see that, now that the opportunity is in front of them.
When Gazprombank converts the Euros to Rubles it is a currency swap, not a currency trade.
The Euros must be deleted back out of existence otherwise it would be hyper inflationary.
All Euros are created as debt ex nihilo in the first place on bank computers.
In general when the principal of a bank loan is repaid it is deleted, but the bank gets to keep the interest that must also be created as debt.
[This comment posted on next article, but more relevant appropriate here]
This article provides an insight into the hard numbers of where and how much real essentials (resources) are concentrated across the world … with the inevitable result of dividing the soceity capable vs inevitable dystopias. The East has the resources, advanced economy and Eurasian integration. The West has disintegrated into illegitimate journal entries to steal from the East.
The Larouche Plan for a New International Economic Architecture, 28 March 2022
An insight into the real (physical production to sustain life) versus monetary empire (journal entries to transfer wealth). Clearly, the physical world now rejects worthless journal entries (and war) in exchange for real goods. This article explains just how concentrated the essentials for modern society are in the world. Ofcourse, the inability of the vast majority of countries to create a society for the many was ackonwledge in 1992 and a decision was made by the West for a ‘anthropoligcal transition’ or controlled collapse. The West organised accelerated wealth transfers to the elite, abandoned physical economy, explored depopulation projects, and implemented a police state.
3 decades of change in three months. The have nots have rejected the haves. The decades long planned Operation Barbarossa 2.0 (Russia regime change and Balkanisation) was thwarted in less than a month, an irreversiable inevitable new financial system was introduced and inevitable consequences for the West. Failed NWO implementation? Failed Operation Barbarossa 2.0? What now? Opium Wars 2.0 (war in Taiwan)? Then what? Obsolete West Military vs East military supremacy?
[Table summary: Russia-India-China (just three countries of SCO) – Population 38%, Wheat 42%, NPK fertiliser 45%, Oil 16%, Gas 23%, Nuclear generation 23%, New nuclear 45%, Coal 65%, Iron ore 26%, Steel 66%, Electrified rail 55%, Trade balance $514bn.]
Russia has already adopted war-economy measures to defend its basic national capacity and guarantee self-sufficiency in key economic essentials.
The physical economy of the trans-Atlantic sector has been in accelerating decline for approximately the last half-century, ever since Nixon’s August 1971 announcement of the end of gold backing for the dollar and the introduction of a speculative floating-exchange-rate system in its place.
Without Russian natural gas and oil, Germany will have 24% less energy than it has today. It is highly unlikely that these supplies could be readily replaced by other sources, and certainly not quickly.
Russia is the third-largest oil producer in the world, and the #1 oil exporter. It produced about 11.3 million barrels per day (bpd) in 2021, of which some 7.2 million bpd were exported. Of these exports, 1.6 million bpd went to China, making it the single largest purchaser of Russian crude. Russia is well-positioned to significantly redirect its oil exports currently going to Europe (about 2.3 million bpd), to China and India, which currently imports 85% of its 4.3 million bpd requirements, but less than 3% of that comes from Russia.
Russia also possesses the world’s largest natural gas reserves, by far, with 47.8 trillion cubic meters (tcm), nearly a quarter of the world total of 205.6 tcm. In 2021, Russia produced a record 763 billion cubic meters (bcm) of gas, of which 185 bcm (24%) were exported. The two largest purchasers of Russian gas are Germany (43 bcm) and Italy (29 bcm). China only purchased some 9 bcm of Russian gas in 2020, but the two countries plan to increase those purchases up to 38 bcm in 2025, and possibly more thereafter.
The sanctions policy against Russia will be particularly devastating for Western nations’ access to vital minerals and metals. Russia, China, and fellow SCO member-nation Kazakhstan combined produce the vast majority of the world’s essential minerals. Of the 42 most critical minerals and mineral products in the world, these three countries combined produce from 30% up to 90% of the world total, according to the authoritative U.S. Geological Survey.
For 16 of those top 42 minerals, Russia, Kazakhstan and China account for more than 70% of total world production.
This is a very interesting and important article. Markets have realized that Dollar is not the best of pricing mechanism for oil anymore. Back in 1970’s OPEC members discussed the creation of a currency known as Geneva basket. The issue was taken up by a summit of heads of states of BRICS back in 2015. However, the main obstacle is a proper replacement for Dollar. Introducing a new international transaction system is complicated and risk the global financial crisis.
Thank you for the article.
Fereydoun Barkeshli l
Austria, Hungary Say No Substitute to Russian Gas as Germany’s BASF Warns of Worst Crisis Since WWII
“Replacing cheap Russian gas with expensive American gas” is an “absurd” proposal, Hungarian Prime Minister Viktor Orban told Kossuth Radio on Friday.
“It’s not that we’ll put on an extra sweater in the evening and turn the heating down a little or paying a few extra forints for gas. The fact is that if energy supplies don’t come from Russia there won’t be any energy in Hungary,” Orban stressed.
The politician noted that 85 percent of Hungary’s gas supplies and 64 percent of the country’s oil comes from Russia, and that geography puts limits on Budapest’s ability to diversify its sources of energy
Austrian energy giant OMV CEO Alfred Stern echoed Orban’s concerns, saying that there was no LNG alternative for Austria.
“Giving up on Russian gas is impossible unless we are willing to live with the massive consequences of such a step. Some countries can do that. It cannot be implemented by Austria this year…As a landlocked country, we don’t have access to LNG. Any diversification would mean investing in more expensive infrastructure to get access to more expensive gas. A phase-out of Russian gas comes at a price. This must be clear to us,” Stern said, speaking to Die Presse on Friday.
Martin Brudermuller, CEO of German chemicals giant BASF, has characterised Berlin’s plans to boycott ruble-priced gas as a “highly irresponsible experiment,” and stressed that Germans underestimate the true risks of such a step.
“Do we want to destroy our entire economy with our eyes wide open? Destroy everything we have been creating for decades?” Brudermuller asked in an interview with FAZ on Thursday. Cutting off gas, the businessman said, “could lead to the worst crisis for the German economy since the end of World War II.”
It’s working. :-D
Comunicado histórico! Direto, objetivo, realista e libertador. Obrigado ao thesaker por disponibilizar. O mundo precisa romper a corrente que lhe prendem ao grilhão do império da mentira. O rompimento com o dólar é a quebra de um elo forte desta corrente. O ventos do norte não movem moinho.
Completely true and great speech – well said President Putin.
I will buy some rubles myself this week asan investment as it can only go up in value.
Should Moscow, if they have not already, demand their frozen assets be returned stat before one cubic meter of gas transits to Germany? Otherwise, it’s just a wink and nod to the past piracy of the West and an encouragement for potential crimes down the road.