Russia and economic war by the west

The price of coal

https://www.tradingview.com/symbols/USDRUB_TOM/

Ruble at under 90 to the dollar as of 11 am March 28.

India ready to bypass dollar in trade with Russia, 28.03.2022.

A mechanism allowing the switch to domestic currencies is expected to be operational this week.

A system allowing direct rupee-ruble payments in trade between Russia and India could be launched this week, the president of the Federation of Indian Export Organizations (FIEO), A Sakthivel, told CNBC on Wednesday. The arrangement would allow India and Russia to carry out financial operations bypassing the US dollar. Russia is effectively blocked from using US currency due to Western sanctions over the conflict in Ukraine.

According to the official, the Indian government is working on a proposal to allow up to five nationalized Indian banks to be engaged in the rupee-ruble trade mechanism, and discussions between the central bank governor, the finance minister, and the banks on the matter have already been held. The arrangement would let Indian exporters continue doing business with Russia despite sanctions banning, among other things, international payment mechanisms in the country, such as SWIFT. It would also let India continue buying Russian energy exports and other goods.

According to Sakthivel, the Indian economy could profit from sanctions Russia is facing, as they give Indian exporters an opportunity to expand on the Russian market.

“Export to Russia is not much, only in agriculture and pharmacy products. Now that the whole of the West is banning Russia, there will be a lot of opportunities for Indian firms to enter Russia,” he stated.

India’s finance ministry and the Reserve Bank of India have not yet commented on the new trade arrangement.

Unlike the US and the EU, India has not criticized Russia over its military operation in Ukraine, and has abstained from condemning Moscow during the recent UN voting rounds. When asked whether India’s continued commerce with Russia would draw Western ire, Sakthivel said his country had taken a “neutral stand” on the situation in Ukraine.

“The government will take into account all the factors. The government is playing it very carefully,” he stressed.

India exported $3.3 billion worth of goods to Russia in 2021, mostly pharmaceutical products, tea, and coffee. In terms of imports, India bought $6.9 billion worth of Russian products, including arms and defense goods, mineral resources, fertilizers, metals, diamonds and other precious stones. India also imports Russian oil, with recent media reports stating that the country’s major refiner, Indian Oil Corp, has stepped up purchases of Russian crude over the past month. India is also reportedly considering buying raw materials from Russia and Belarus for fertilizer production amid skyrocketing commodities’ prices.

https://www.rt.com/business/552531-india-russia-ruble-trade-deal/

Chairman Xi Just Made a Big Move, China Announces They Will Keep Purchasing Crude Oil and Gas From Russia
March 28, 2022 | Sundance | 165 Comments

Joe Biden said the western alliance would target any country that violated the sanctions against Russia.  Specifically, after a lengthy telephone call with Chinese Chairman Xi Jinping on March 18th: “President Biden made clear the implication and consequences of China providing material support, if China were to provide material support to Russia, as it prosecutes brutal war in Ukraine,” the senior administration official said, “not just for China’s relationship with the United States, but for the wider world.” (link)

Today, ten days later, China just called Joe Biden’s bluff.

China announces they will violate the western sanctions and continue to purchase crude oil and gas from Russia.

HONG KONG — Chinese state energy company Sinopec will continue to buy crude oil and gas from Russia, a top executive said on Monday, even as Western democracies step up sanctions in response to the country’s invasion of Ukraine.

The company, known formally as China Petroleum and Chemical, is involved in two major projects in Russia: an oil and gas production joint venture called Taihu in the Volga-Ural petroleum basin in western Russia with state-owned peer Rosneft, and the development of the Amur gas chemical complex and processing plant with Sibur in the Russian Far East, adjoining China.

Sinopec holds a 10% stake in privately owned Sibur. During his company’s annual results call on Monday, Sinopec President Yu Baocai noted that it bought both crude and gas from Russia last year. “We will also continue to do so in accordance to commercial principles and international trade regulations in the future with all trading partners in order to develop normal oil and gas trading cooperation,” he said. Yu provided no figures, but said the buying is in line with the company’s strategy of “diversifying import sources.” Key considerations, he said, include supply types, price, transport costs, tariffs and supply stability. Referring to Sinopec’s projects in Russia, Yu said that both are “operating stably in general for the time being, and there are no indications of impairment.” (read more)

As far as geopolitical chess is concerned, Chairman Xi just put Joe Biden in ‘check.’

There is no way Joe Biden is going to challenge or confront Xi Jinping directly.  However, the intent of the western alliance to change the landscape of economics, trade and finance for the rest of the world is now directly being tested.   We can also look at this like China testing NATO.

Your move Joe….

https://theconservativetreehouse.com/blog/2022/03/28/chairman-xi-just-made-a-big-move-china-announces-they-will-keep-purchasing-crude-oil-and-gas-from-russia/#more-230695

Germany Says G7 Reject Russia Demand to Pay for Oil and Gas in Rubles, Sort of
March 28, 2022 | Sundance | 29 Comments

Behind the headline is a qualifier that most will miss. “We will urge the companies affected not to follow Putin’s demand.” The problem for the G7 political leaders is that most of the transactions are between private companies. The heads of the U.S, France, Germany, Italy, Japan, Canada and the U.K, can stake a position, but the ultimate decision around the transaction in the hands of the private company buyers.

Russia can set the terms. Whether the G7 political leaders shout ‘breach of contract‘ is seemingly a moot point. In the big picture, the politicians have already breached the terms of prior trade agreements with sanctions. Russia can turn off the supply or demand payment in rubles as terms of sale.

BERLIN (AP) — The Group of Seven major economies agreed Monday to reject Moscow’s demand to pay for Russian natural gas exports in rubles.

German energy minister Robert Habeck told reporters that “all G-7 ministers agreed completely that this (would be) a one-sided and clear breach of the existing contracts” for natural gas, which is used to heat homes, generate electricity and power industry. The energy ministers of France, Germany, Italy, Japan, the United States, the United Kingdom and Canada, as well as the European Union energy commissioner, met by videoconference and reaffirmed that contracts “must be respected,” with most stipulating payments be in euros or dollars, a G-7 statement said. “Payment in ruble is not acceptable, and we will urge the companies affected not to follow (Russian President Vladimir) Putin’s demand,” Habeck said. (read more)

It seems odd the G7, who triggered the sanctions to hit Russia with financial damage and block SWIFT currency exchanges, would want to force Russia to accept euros or dollars for purchase. After all, they didn’t want Russia to have euros and dollars.

Unless, of course, those G7 ministers realize that by not using euros and dollars to trade energy supplies, the value of those currencies will necessarily diminish. One could look at this demand by the G7 as a larger realization of what might happen downstream if they lose the petro-dollar as a control mechanism.

Are they starting to realize the unintended consequences they and NATO have created?

India and China just made big chess moves by: (1) India agreeing to purchase in rupees/rubles exchange; and (2) Beijing saying they will not adhere to the western sanctions.

It’s shaping up to be G7 -vs- BRICS…

Keep watching.

https://theconservativetreehouse.com/blog/2022/03/28/germany-says-g7-reject-russia-demand-to-pay-for-oil-and-gas-in-rubles-sort-of/#more-230699

Russian Central Bank should open up a line of trade transactions for rubles at the Moscow Stock Exchange (Mosbirzha).

"all G-7 ministers agreed completely that this (would be) a one-sided and clear breach of the existing contracts”

Yeah, but none of them are impartial observers. They say as much because they directly benefit from that position. Further, they are crying after deliberately taking actions to make their "payment" worthless. They are as fraudulent as one who intentionally writes bad checks.

Just shut the valves if they don't shut up.

The G7 doesn't have any contracts, it is private companies that pay and if they try to pay in euros or dollars then Russians will refuse payment and stop deliveries.

Those private companies wont care about this political BS, they will pay what the Russians want the way they want it.... and if they don't then the Russians can stop delivery because it is not paid for.

GarryB wrote:The G7 doesn't have any contracts, it is private companies that pay and if they try to pay in euros or dollars then Russians will refuse payment and stop deliveries.

Those private companies wont care about this political BS, they will pay what the Russians want the way they want it.... and if they don't then the Russians can stop delivery because it is not paid for.

That is true if things were operating without political interference. But NATzO regimes are cracking the whip and the fake stream media
is terrorizing companies to toe the party line.

Sholz declared that Germany and other precious EU states will gain independence from Russian gas in a couple of years. This is
an announcement that all long term contracts with Gazprom are to be torn up. So Gazprom is fully within its contractual rights
to declare force majeure and

1) Go onto the spot price.

2) Cut back supplies to ensure the spot price stays high

3) Demand rubles for every cubic meter of its gas

The chutzpah of these EU monkeys to demand Russia make it easy for them to screw over Russia. There is now no point
playing nice with these f*ckers. They want to act like punks, then they should be treated like punks.

They are talking now about contracts and following the law to deal with them ? what about stealing the Russian money outside ?!

ahmedfire wrote:They are talking now about contracts and following the law to deal with them ?  what about stealing the Russian money outside ?!

Don't take anything they say at face value. They're unhinged and high on copium.

mnrck wrote:I guess the next victim of anti-Russia cancel culture will be the letter Z of the alphabet.

Here we are:
Ukrainian Minister of Foreign Affairs Dmitry Kuleba has urged the global community to ban the Latin letter “Z” since, from Kiev’s point of view, it represents Russia’s military attack on the country.

https://www.rt.com/russia/552908-kiev-call-world-ban-letter/

Macron said in a conversation with Putin that it is impossible to pay for gas contracts in rubles. French choose suffering and keep licking USA ass.