The ruble continues to strengthen – Europeans rushed to buy Russian currency
The dollar exchange rate on the Moscow Exchange continues to fall. Today it dropped below 84 rubles. The euro exchange rate dropped to 93 rubles.
Experts attribute this to yesterday’s order by Russian President Vladimir Putin to the government, the Central Bank and Gazprom to implement measures to transfer payments for gas with unfriendly countries to rubles by March 31.
“Europeans rushed to buy the ruble. And not a single contract has been concluded yet. As one of my friends said: I’ll go scratch my back,” political scientist Marat Bashirov wrote in his Telegram channel.
The seriousness of Russia's intentions was confirmed by the press secretary of the Russian President Dmitry Peskov to the American PBS channel.
“We definitely do not intend to engage in charity work and supply gas to Western Europe for free. No payment – no gas,” he said.
Earlier, Peskov told Russian journalists that Russia would compensate for losses from the loss of the European market in Asia.
“After all, the world market is more multifaceted than the European one. Although, of course, the European market is premium,” he said.
The spokesman said that “respected European international buyers” will be offered a scheme for purchasing rubles that will be “simple, understandable, transparent and feasible.”
“Companies must understand the current situation and the completely changed situation that has arisen in the context of economic war. Companies must also understand that they just need to buy rubles for their currency, euros, dollars, and pay for gas in rubles. De facto, practically nothing changes,” Peskov said.
Evidence that the decision to switch to rubles in trade with Europeans is not spontaneous was Gazprom’s refusal last week to book the capacity of the Yamal-Europe gas pipeline for April, as well as the cancellation of tenders for transit through the Ukrainian GTS.
The leader of A Just Russia, Sergei Mironov, believes that the measures taken are insufficient. He called on the Russian authorities to stop gas supplies to Western countries that send weapons and military equipment to Ukraine.
“Close the valve! This will “freeze” their desire to stir up conflict and speed up the success of our special operation. Victory is near!” Mironov wrote on the social network.
The LDPR came up with a similar initiative last week.
“We consider it necessary to stop all supplies of all energy resources and raw materials to the USA, the EU and all countries that supported anti-Russian sanctions. We are confident that after these measures are taken, massive production shutdowns will begin, prices will rise sharply, unemployment will begin, and stocks in which American and European investors are accustomed to investing will fall. We are confident that the people of these countries will replace anti-Russian politicians with politicians of common sense.
After this, we will be ready to restore our supplies, but for this we will have to introduce a new electronic currency - the digital gold ruble, which will be fully backed by Russia’s gold and foreign exchange reserves, its trade, industrial and raw material potential. And we will completely abandon trading for euros and dollars,” said deputy Vladimir Koshelev on the sidelines of the State Duma.
The LDPR faction sent this proposal to the president of the country.
Currently, 58% of Russian gas supplies to European countries are carried out in euros, 39% in dollars, and 3% in pounds. After the announcement of the transition to rubles in Europe, gas prices increased: April futures are priced at $1200-$1500 per 1000 kb/m.
Russian senator Alexei Pushkov does not consider the appeals of European consumers to the fact that their contracts were not concluded in rubles to be justified.
“Is the massive application of sanctions by the countries of the Western alliance and the economic war they declared on Russia compatible with previous agreements? Didn’t blocking $300 billion of Russia’s foreign exchange reserves blow up all mutual obligations and the entire system of financial relations with Russia?” he wrote.
Economist Nikita Krichevsky believes that not only Russia, but also the United States will benefit from the translation of European contracts into rubles.
“The Europeans were treated like suckers. Let’s remain silent about Ukraine altogether - its territorial integrity is no longer a foreign policy priority of the Biden administration. Both Russia and the United States benefit. Yes, we will lose several percent of export revenue, but the game is worth the candle. As for the Americans, this is a continuation of the shale revolution, celebrated by the Democrats for the second decade,” Krichevsky wrote.
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