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Russian Sanction Effects | 2022

In Jan 2014 the Ruble was at 33-1 with the dollar.
It has depreciated consistently since then reaching 114 -1 this month.
So yeah Russia’s nearly recovered from where they were immediately prior to the war.
But the long term trend has been poor.
The deterioration started in 2014 after the invasion of Crimea.
So the long term strategy of expansion has not work so well thus far for president Putin.
But sure their back to trading 80-1

US Dollar to Russian Ruble Exchange Rate Chart | Xe

USD to RUB currency chart. XE’s free live currency conversion chart for US Dollar to Russian Ruble allows you to pair exchange rate history for up to 10 years.
www.xe.com www.xe.com
 
One reason the ruble is up is because all buyers of Russian oil and gas must open up ruble bank accounts to pay for it.
Russian President Vladimir Putin has issued a decree demanding payment for natural gas in rubles but appeared to temper the order by allowing dollar and euro payments through a designated bank. The decree Putin signed and state news agency RIA Novosti published says a designated bank will open two accounts for each buyer, one in foreign currency and one in rubles. Buyers will pay in foreign currency and authorize the bank to sell it for rubles on Moscow's currency exchange. The rubles would then be placed in the second account, where the gas is formally purchased.
https://abcnews.go.com/International/wireStory/italy-russia-seek-payment-rubles-natural-gas-83784261
Click to expand...
 
How’s it work though, the gas still flows and Germany and others are refusing to pay in rubles.
The day has come and went and nothings happened
Lithuanian has just outright shut off shipments themselves.



11 hr 34 min ago

Russian gas continues to flow into Germany, government spokesperson says​

From CNN's Inke Kappeler in Berlin and Niamh Kennedy in London

Russian gas continues to flow into Germany despite Germany's refusal to adhere to a decree from Russian President Vladimir Putin requiring payments for gas contracts to be made in rubles.
"Gas is flowing to Germany. Deliveries are incoming. Supply security is still guaranteed," a German government spokesperson told CNN on Saturday.
Click to expand...
The German government is "in close contact" with its European partners and will "monitor the situation closely," the spokesperson added.
German transmission system operator Gascade, which manages the German section of the Yamal-Europe pipeline, told CNN Saturday that it couldn't confirm any cutting off of gas supplies to Germany.
The Russian president delivered an ultimatum Thursday to "unfriendly" nations to pay for their energy in rubles starting Friday or risk being cut off from vital supplies. But German Chancellor Olaf Scholz insisted that German companies will continue to make payments for Russian gas only in euros.
Kremlin spokesperson Dmitry Peskov said Friday that Russia would not turn off gas supplies to Europe immediately
 
Ben Dhyani said:
^ Yes, " allowing dollar and euro payments through a designated bank. Buyers will pay in foreign currency and authorize the bank to sell it for rubles on Moscow's currency exchange. The rubles would then be placed in the second account, where the gas is formally purchased."
https://abcnews.go.com/International/wireStory/italy-russia-seek-payment-rubles-natural-gas-83784261
Click to expand...
Well then I dont get it. European nations are still paying in euros or dollars. It’s left to a Russian bank to convert it.
Russia’s just saying the gas isn’t payed for till a Russian bank converts it. The onus is still on a Russian bank to convert it.
 
^ Yes, pretty much something like that, the buyer would request its bank in Russia to do the conversion into rubles.
 
Ben Dhyani said:
^ Yes, pretty much something like that, the buyer would request its bank in Russia to do the conversion into rubles.
Click to expand...
Then it’s meaningless and it’s not their Russian bank it’s a second bank in Russia that makes the conversion.
They are not buying rubles on the international fx markets.
A second party Russian bank is converting the euros to rubles domestically.
It’s a big nothing
 
Obreid said:
Then it’s meaningless and it’s not their Russian bank it’s a second bank in Russia that makes the conversion.
They are not buying rubles on the international fx markets.
A second party Russian bank is converting the euros to rubles domestically.
It’s a big nothing
Click to expand...
It's not necessarily a second bank, some banks allow business customers to operate both foreign currency and domestic currency accounts. A buyer of gas brings their foreign currency in to one account and then converts and transfers the appropriate amount to a ruble currency account to pay for the oil or gas. But I must admit I don't know how payments were done before and what difference it makes with this new method?
 
Ben Dhyani said:
It's not necessarily a second bank, some banks allow business customers to operate both foreign currency and domestic currency accounts. A buyer of gas brings their foreign currency in to one account and then converts and transfers the appropriate amount to a ruble currency account to pay for the oil or gas. But I must admit I don't know how payments were done before and what difference it makes with this new method?
Click to expand...

In the end Russian banks still ending up taking in euros in the exchange.
Gas still flows both sides politicians can claim a principled victory and the war goes on.
 
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