The Demolition of Russia's Economy

Discussion in 'Politics' started by gwb-trading, Mar 4, 2022.

  1. UsualName

    UsualName

    Not at all. All of that is true. More supply lining up and the Saudis are snakes. Totally agree so you better run and go check your math.

    On a side note, I’m waiting to see if/when gas consumption breaks. There will come a point when the consumer throws in the towel.
     
    #201     Mar 30, 2022
  2. gwb-trading

    gwb-trading

    Putin gets his a$$ handed to him with his "pay with rubles" demand.... forced to back down and be further humiliated.

    Russia appears to be softening its gas-for-rubles demand, easing supply risks to Europe — for now
    https://www.cnbc.com/2022/03/31/eur...ears-to-soften-its-gas-for-rubles-demand.html
    • In a call with German Chancellor Olaf Scholz on Wednesday, Russia’s Vladimir Putin said European companies could continue paying for gas supplies in euros or dollars.
    • Meanwhile, Kremlin spokesman Dmitry Peskov on Wednesday confirmed Russia would not be seeking gas payments in rubles immediately, saying instead that this switch is likely to be a “gradual process.”
    • Germany, alongside the G-7 nations, has signaled gas supply agreements cannot be unilaterally modified and European buyers of Russian gas say the Kremlin is not entitled to redraw long-term contracts.
    Russia appears to have walked back demands that European companies pay for gas supplies in rubles from Thursday, temporarily alleviating the risk of supply disruptions.

    It comes after Russia’s President Vladimir Putin repeatedly demanded that so-called “unfriendly” countries pay for gas in rubles, rather than in euros or dollars, targeting those behind the heavy economic sanctions designed to isolate Russia over its unprovoked onslaught in Ukraine.

    Putin had instructed state-controlled gas giant Gazprom, the central bank and the government to outline proposals for how this policy would be implemented by Thursday. The currency switch for gas supplies had been rejected by major G-7 economies.

    However, in a call with German Chancellor Olaf Scholz on Wednesday, Putin said European companies could continue paying for gas supplies in euros or dollars.

    The money will be paid into Gazprom Bank and transferred in rubles to Russia, German broadcaster Deutsche Well reported.

    Scholz did not agree to this procedure in the talks but asked for written information to better understand the proposal, according to the report.

    The Kremlin said the currency switch was necessary due to the fact that the foreign exchange reserves of the Bank of Russia had been frozen by EU member states. It was agreed that experts from Russia and Germany would continue to negotiate on this matter, the Russian statement said.

    Separately, Kremlin spokesman Dmitry Peskov on Wednesday confirmed that Russia would not be seeking gas payments in rubles immediately, saying instead the switch was likely to be a “gradual process.”

    Germany, alongside the G-7, has signaled that gas supply agreements cannot be unilaterally modified and European buyers of Russian gas say the Kremlin is not entitled to redraw long-term contracts.

    Most countries currently pay for Russian gas in euros or dollars.

    (More at above url)

     
    #202     Mar 31, 2022
  3. Tsing Tao

    Tsing Tao

    Do you even understand how any of this works? I ask, because you clearly are off your meds or something.

    If Putin gets euros or dollars, does this help or hurt the ruble? And if he gets rubles from buying partners, does it help or hurt the ruble?
     
    #203     Mar 31, 2022
    smallfil likes this.
  4. gwb-trading

    gwb-trading

    There are previous lengthy explanations on how Putin getting paid in rubles for gas will prop up the ruble. Putin backing down from this demand shows he has no bargaining power.
     
    #204     Mar 31, 2022
  5. smallfil

    smallfil

    Joe Biden is set to release 1 million barrels of oil daily from the strategic oil petroleum reserves of the US, for the next 6 months I heard. Daily US oil consumption is 20.54 million barrels of oil. At the same time, Democrats are moving to remove subsidies to the oil sector. Yeah, that is going to drive down the price of oil and at the pump? Good luck with that pipe dream.
     
    #205     Mar 31, 2022
  6. SunTrader

    SunTrader

    Only 1587.48 points to go for MOEX to get back to last October's high:-
    ! MOEX.png
     
    #206     Mar 31, 2022
  7. Tsing Tao

    Tsing Tao

    But that's not accurate, and I'm asking you to explain it. Can you? Can you tell me what happens if Putin receives rubles vs. what happens if he receives dollars/euro instead? Without an article as your answer, or some stolen "go read this" response.

    Do you know?
     
    #207     Mar 31, 2022
  8. SunTrader

    SunTrader

    LOL sanctions are not working no, no, no .... even though Russia is discounting, their main source of revenue, oil by $20 (some cases prolly more) an effin barrel. :confused:
     
    #208     Mar 31, 2022
  9. SunTrader

    SunTrader

    Correctamundo.
     
    #209     Mar 31, 2022
  10. Tsing Tao

    Tsing Tao

    Horrible and short sighted decision by Biden. But I'm not surprised. He's just thinking of the next election.

    Releasing this much is about 30%? 35% of the reserve? A bandaid, that doesn't address the structural shortage in the out years and discourages development that would aid in that growth in years to come.
     
    #210     Mar 31, 2022
    smallfil likes this.