Russia and economic war by the west

kvs wrote:

Hole wrote:In other words they are to dumb to buy Rubles at russian banks.

It is not so much retardation but panic.  If Russian energy goes on the ruble then you will see the ruble becoming more
"hard" than the dollar.   I even expect its exchange rate to go from 90:1 to 30:1.   This is not very good for Russia
since a "cheap" currency promotes exports but I think Russia can survive a strong currency.

Russia could print money out of thin air to lower its value and stabilize to a desired point.

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

When you deliberately take action to make your payment worthless, then you are guilty of fraud and have violated your contract. The EU's contracts now aren't worth a damn, and they only have themselves to blame.

The irony is that the US dollar had real power because it was internationally used, Russia held quite a bit of US debt because they knew when you get to print your own money and that money is the international currency of choice then you will always be able to pay...

But the US got stupid and started to abuse its power... when it started attacking Russia with its dollar it forced Russia to get rid of US dollars in terms of debt and also in terms of investment and transactions, which immediately diminished the power of the US dollar.

By using it as a weapon they broke it as a tool of control and power... and what they are going to find is that once countries lose faith and trust in the dollar the it loses all its power as the international currency which was at the core of US power for a good portion of the last half century or more.

The US has destroyed its own power base.

owais.usmani wrote:

https://twitter.com/Sino_Market/status/1509055592270221315

This week is when India and Russia move to local currencies for trade. So it's more likely already alternative to swift is working in India.

Russia replaces imports of food packaging and needles for venous blood sampling, by Tatyana Kosolapova for VZGLYAD. 30.03.2022.

In Russia, under the import substitution program, the production of microwave switches for space technology, food packaging, pharmaceutical substances, bilateral needles with an imaging camera for taking venous blood and electric motors for diesel locomotives has begun production, Roman Petrutsa, a representative of the Industrial Development Fund (FPR), told VZGLYAD newspaper.

The Industrial Development Fund provides targeted loans at a low rate for projects aimed at import substitution and the development of new high-tech products, says Petruta. According to him, enterprises can receive funds from the fund to replace equipment, automate production or introduce new technologies and expand the range.

Thus, Almaz, a research and production enterprise, with a loan from the FRP in the amount of 250 million rubles, launched the first domestic production of microwave switches for artificial Earth satellites in Saratov. Previously, microwave switches were not produced in Russia. The implementation of the project makes it possible to abandon foreign analogues that were used in spacecraft.

Another example, the expert says, is aimed at import substitution in the daily life of Russians - food packaging. Russia's largest manufacturer of plastic packaging, Atlantis-Pack, with the support of the IDF, has launched a plant in Rostov-on-Don to produce import-substituting barrier films for food products. According to the company, in 2020–2021, the share of imports in the Russian market for such films was estimated at 25–30%. The launch of the plant will reduce this figure to 15%. Investments in the creation of new production amounted to 1.9 billion rubles.

Two more projects are related to the medical industry. Thus, the Pharmasyntez enterprise, with the help of a loan from the FRP for 300 million rubles, launched the production of pharmaceutical substances. They are used in the production of drugs for the treatment of tuberculosis, hepatitis, HIV, diabetes, COVID-19 and other serious diseases. Thanks to the new production, it was possible to increase the share of Russian raw materials in domestic medicines up to 50%.

The second project was implemented by a company from Dubna near Moscow "Granat Bio Tech". Thanks to a RUB 389 million loan from the IDF, it launched the production of a full cycle of bilateral needles with an imaging camera for venous blood sampling. Prior to this, according to the company, there was no production of a full cycle of such needles in Russia. Domestic demand for these products was fully covered by supplies from China, the USA and EU countries. The launch of production in Dubna helped to replace up to 50% of imports.

And under the Components program, the Tatarstan Transport Electrical Equipment Plant received 464 million rubles and increased the production of electric motors for shunting diesel locomotives. According to the company's estimates, earlier the import of electric motors for locomotives used in short distances and in industry was about 70%. The plant will be able to significantly reduce this figure. In addition, the company's products are 25% cheaper than foreign analogues.

“Currently, the Fund has issued 1,047 loans totaling over 240 billion rubles, while more than 470 enterprises have already launched their production. The basic program of the FRP - Development Projects - is aimed specifically at import substitution and the introduction of the best available technologies,” Petruta stressed.

https://vz.ru/news/2022/3/30/1151065.html

Ruble is not stabile enough to be used in international payments - to reach that status needs years and big development of local financial services and banks with advanced services and rules - not easy to have that. Russia was going into that direction years ago and investments in ruble was very profitable with big prospects but then came Crimean crisis and first sanctions - so ruble is not promising currency anymore, to be so it needs huge networking with international banks, agencies, stock exchanges etc... In finance is all about networking and in present era global financial system is basically based on dollar and there is very little chance this will change in quick time (Yuan could replace it but in distant future).

So there is no easy work around for Russia and west knows this, that is reason why they are ready to go for strict sanctions even if they will make big damage to their economies - but they know Russia will be hurt much more so.

The best out is for Russia to make this adventure in Ukraine short and quick - the longer it last real damage will linger and get more heavy. And ordinary citizens will feel it - there are projections that Russian economy could fall 10-15% if more sanctions are enforced, this means 15 years of economical development gone into wind. Those are serious issues and decisions that could impact Russia for next decades.

Arrow wrote:Germany will pay for gas in Euro.

No. The "conversion" will be done in the german branch of Gazprombank.