Putin calls for 'unfriendly nations' pay for Russian fuel in rubles

Putin calls for 'unfriendly nations' pay for Russian fuel in rubles

Russian President Vladimir Putin chairs a authorities assembly through a video hyperlink on the Novo-Ogaryovo state residence outdoors Moscow on Wednesday. Putin mentioned Russia will solely settle for funds in rubles for fuel deliveries to “unfriendly nations,” which embrace all EU members and the U.S.

Mikhail Klimentyev/Sputnik/AFP through Getty Photos

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Mikhail Klimentyev/Sputnik/AFP through Getty Photos

Russian President Vladimir Putin chairs a authorities assembly through a video hyperlink on the Novo-Ogaryovo state residence outdoors Moscow on Wednesday. Putin mentioned Russia will solely settle for funds in rubles for fuel deliveries to “unfriendly nations,” which embrace all EU members and the U.S.

Mikhail Klimentyev/Sputnik/AFP through Getty Photos

Russia desires “unfriendly nations” to pay for Russian pure fuel in rubles. That is a brand new directive from President Vladimir Putin as he makes an attempt to leverage his nation’s in-demand sources to counter a barrage of Western sanctions.

“I’ve determined to implement … a sequence of measures to modify funds — we’ll begin with that — for our pure fuel provides to so-called unfriendly nations into Russian rubles,” Putin mentioned in a televised authorities assembly, including that belief within the greenback and euro had been “compromised” by the West’s seizure of Russian property.

The brand new requirement appeared geared toward propping up the flagging Russian foreign money, the ruble, by rising demand for it. Its worth gained towards the greenback and the euro following Putin’s announcement. Pure fuel costs surged in Europe, the place Russia has equipped about 45% of imports.

Marcel Salikhov, president of the Institute for Power and Finance in Moscow, mentioned the transfer amounted to a “symbolic counter-sanction” aimed on the West. He famous that the Kremlin had already ordered exporters to alternate 80% of their foreign-currency proceeds for rubles.

“It is tough, given the present financial scenario, for Russian authorities to desert gross sales of oil and fuel to the Western nations,” Salikhov advised NPR.

“You possibly can say, ‘We don’t belief euros or {dollars},’ however economically it is the identical operation. Cash is cash.”

President Biden earlier this month banned Russian vitality imports to the U.S., with a 45-day window to wind down present contracts. European nations have introduced plans to scale back dependence on Russian vitality. However for now, they proceed to purchase from Russian oil and fuel corporations, the biggest of that are managed by the state.

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To this point, Russia has continued to fulfill its contractual obligations to Western fuel and oil shoppers — even because it has touted reorienting its vitality export towards China. Moscow additionally not too long ago added the U.S., the UK and your entire European Union to its rising record of “unfriendly nations.”

Russian leaders have additionally hinted at extra extreme penalties as members of the EU bloc have sought — so far unsuccessfully — to impose an outright embargo on Russian imports.

In a speech earlier than the Russian Duma on Wednesday, the Kremlin’s Power Minister Alexander Novak warned of a possible “collapse” in vitality markets — predicting costs would skyrocket as Russian exports stalled.

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