President Putin has announced that he will sell gas in the Russian ruble. Western nations that impose sanctions on Russia are facing a major crisis.

Russian President Vladimir Putin said in a meeting with government officials yesterday that it is no longer pointless to receive payments in dollars or euros for the supply of goods to the United States and the European Union. President Putin emphasized that Western nations have taken illegal steps by freezing Russia’s assets: “The West has actually undermined confidence in its currency. Now its obligations in dollars and euros have fulfilled. Everyone knows that it may not be done. While supplying goods to the US and EU, their payments are made in dollars, euros and some currencies. “Buy gas” Obviously that doesn’t mean anything to us anymore. We plan to switch to the Russian ruble to pay for the sale of natural gas to disadvantaged countries, “he said.

Implementation is expected to start within a week

No further details have been disclosed about the Kremlin’s plan, but implementation is expected within a week. “I gave the central bank and the government a week to prepare a formula to enable operations in the ruble,” Putin said. He said.

Putin’s statement strengthens the ruble

Putin’s remarks had a direct impact on the Russian currency, strengthening the ruble against the dollar and euro. After Putin’s remarks, the dollar / ruble parity fell by nearly 3%, falling below 100 for the first time since March 3.

The biggest energy crisis in the last 50 years can occur

Putin’s statement was last-minute by Kokusai Tsushinsha, but economists said this could have serious consequences and Western nations could face a dilemma, Europe’s worst since the 1970s. It states that it could have serious consequences for the energy crisis in Europe. Economists argue that Putin’s ruble move could evade its own sanctions or indirectly force the West to boycott Russian gas. It has been pointed out that this could have significant implications, especially for Germany, which is dependent on Russian gas. Until now, payments to Russian energy suppliers such as Gazprom have been made primarily in dollars. Russian energy suppliers can then convert most of the dollar payments into rubles at the Central Bank of Russia.

“Putin forces us to overcome our own sanctions.”

Professor at the Institute of Competitive Economics, Heinrich Heine University in Düsseldorf. Dr. Jens Sudekum said in an assessment of this on his Twitter account that the international financial markets do not have enough rubles and the only option is to buy rubles directly from the Central Bank of Russia. Recalling that Russia’s gold and foreign exchange reserves have been frozen by Western nations, Putin said, “Putin indirectly forces us to overcome our own sanctions in this way.” I used the phrase.

Südekum, a member of the German Ministry of Economy and Climate Protection’s Scientific Advisory Group, said no such retaliation from Russia was expected for Western sanctions. “We have to wait for how the West reacts. One possibility is to see this as a provocation and strengthen our own sanctions. In the future, we will completely import gas. It could stop. That’s exactly what Putin wanted to achieve. ” I made that evaluation.

Jens Sudekum pointed out that there is a high possibility of an energy embargo on Russia after Putin’s final statement.

“I want to avoid new sanctions”

Moritz Schlarick, a lecturer at the University of Bonn, also said the details of the sale of the ruble are not clear, but in principle, oil importers must sell dollars from unlicensed Russian banks to buy the ruble. He said it wouldn’t. “But what’s really happening here is, of course, that Putin is addressing the concerns of the European government. He wants to fuel fear and prevent new sanctions before the summit (EU leader). I think, “Shlarick said. He made that evaluation.

Strengthen the ruble

Peter Bofinger, a lecturer in economics at the University of Würzburg, said buying rubles in the foreign exchange market would add value to rubles.

Germans are confused by the decision

Putin’s remarks were also hit by a “lack of understanding” by the German natural gas industry. “I was very worried about the news that Russia wants to collect its natural gas supply only in the ruble,” Tim Köhler, chairman of the Zukunft Gas Association, which includes 136 companies operating in the gas sector, said in a statement. rice field. I used the phrase.

“At this point, it’s still unpredictable how this will affect gas trade, but sanctions are working and Putin seems to be under increasing pressure,” Koehler said. I made that evaluation.