Putin has shown how to resist US pressure

Russia proposes to establish a bilateral settlement system between countries without Western intermediaries
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article from the plot

Russia has refused to sell gas for foreign currency

Russian President Vladimir Putin has shown other countries how to abandon US dictates with a new scheme of paying for gas in rubles, Marat Bashirov, director general of the Center for the Study of International Sanctions, said in an interview with URA.RU. In his opinion, Russia proposes to establish a bilateral settlement system between the countries, excluding Western intermediaries.

– Putin stated that from April 1 he will transfer the payment for gas with unfriendly countries in rubles. Did this mechanism start working?

Scholz Olaf, Official Website of the Chancellor of Germany, Denzel

German Chancellor Olaf Scholz (left) and French President Emmanuel Macron (right) have failed to influence Russian leader Vladimir Putin on gas payments in rubles

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“He made it that way.” Let’s say you have a valid contract until May 2022. It is concluded in euros. After Putin’s decision, you transfer payments for gas in euros to Gazprombank, while opening an account in rubles. The bank converts these euros into rubles at the rate of the Moscow Stock Exchange and pays for gas from the ruble account.

– Do we understand correctly that the West will not be able to freeze gas payments now?

– In the new scheme there is no participation of American banks, which can block the payment. The United States does this through the correspondent accounts of its financial institutions. I can say that the transition to payment in rubles is a brilliant move by Putin, who deprives Western banks of the role of intermediaries in the calculations. The president’s actions strengthen Russia’s economic sovereignty.

– It turns out that Putin’s decision changes the international settlement system?

– He proposes to establish a system of bilateral settlements between countries, excluding intermediaries. The Americans are threatening that if other countries settle accounts with Russia and the funds pass through the correspondent accounts of intermediaries, the United States will block these funds, and everyone is afraid. When calculating directly without intermediaries, the West has no leverage. Now other states are forced to look back at the Americans [при расчете с Россией из-за страха санкций].

– Looking at how Putin’s decision worked, can other countries repeat this experience?

The seventeenth annual press conference of the President of the Russian Federation.  Moscow

Vladimir Putin has shown that it is possible to abandon the dictates of the United States and move to settlements in national currencies

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– Nobody trusted the system of payment in dollars. Americans used this system to threaten and monetize others. We are not the only country that got into a fight in the United States, just Russia was the first to come out and say it is not afraid [противостоять этой системе]. By his decision, Putin demonstrated that it is possible to switch to settlements in national currencies and abandoned the dictates of the United States.

– Putin stressed that Russia sells gas in Europe below current spot quotes. The United States is trying to profit from global instability and wants to convert Europe to its expensive liquefied natural gas. It turns out that European elites do not think about their citizens, and Russia, represented by the president, thinks about European gas consumers, guaranteeing the fulfillment of contracts?

– By his actions, Putin is protecting ordinary Europeans. In Europe, there is a sales elite interested in buying expensive [американский] gas. There is blue fuel from Russia and gas from the United States, which is imported at a reduced price. Let’s imagine that Russian gas costs 10 euro cents and American gas costs 17. The European elite is interested in buying expensive gas, and Putin says this is unfair. When he says that, who is he protecting? An ordinary European. Of course, there are politicians in Europe who think of their constituents who have not sold their conscience, but the dominant part of the Western elite does not think of their citizens – this is true.

– That is, it is more profitable for Europeans to buy gas from Russia, if you do not take into account the policy?

Open license for 30.07.2015.  Gas production

Expert: Europe does not need to build storage terminals for Russian gas, it is profitable to buy it

Photo: media.gazprom-neft.ru.

– It’s a question of price, speed and reliability. Gas from Russia is more profitable. If you get it through a pipeline, you don’t even think about where to store it, it flows and reaches the consumer. Storage and liquefaction terminals need to be built for liquefied gas.

– German Chancellor Olaf Scholz and French President Emmanuel Macron refused to pay for gas in rubles, but when the Russian leader announced the payment for blue fuel in Russian currency, they changed their minds. Why did this happen?

– They played a political game. Neither Macron nor Scholz are CEOs of companies that buy gas. Our president can instruct Gazprom, a state-owned company, to sell gas there for so much. And through corporate procedures this order will be fulfilled. Scholz cannot tell any German company how much to buy gas for and from whom. European politicians tried to score political points without agreeing to switch to paying for gas in rubles, but they did not succeed.

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Russian President Vladimir Putin has shown other countries how to abandon US dictates with a new scheme of paying for gas in rubles, Marat Bashirov, director general of the Center for the Study of International Sanctions, said in an interview with URA.RU. In his opinion, Russia proposes to establish a bilateral settlement system between the countries, excluding Western intermediaries. – Putin stated that from April 1 he will transfer the payment for gas with unfriendly countries in rubles. Did this mechanism start working? “He made it that way.” Let’s say you have a valid contract until May 2022. It is concluded in euros. After Putin’s decision, you transfer payments for gas in euros to Gazprombank, while opening an account in rubles. The bank converts these euros into rubles at the rate of the Moscow Stock Exchange and pays for gas from the ruble account. – Do we understand correctly that the West will not be able to freeze gas payments now? – In the new scheme there is no participation of American banks, which can block the payment. The United States does this through the correspondent accounts of its financial institutions. I can say that the transition to payment in rubles is a brilliant move by Putin, who deprives Western banks of the role of intermediaries in the calculations. The president’s actions strengthen Russia’s economic sovereignty. – It turns out that Putin’s decision changes the international settlement system? – He proposes to establish a system of bilateral settlements between countries, excluding intermediaries. The Americans are threatening that if other countries settle accounts with Russia and the funds pass through the correspondent accounts of intermediaries, the United States will block these funds, and everyone is afraid. When calculating directly without intermediaries, the West has no leverage. Now other states are forced to look back at the Americans [при расчете с Россией из-за страха санкций]. – Looking at how Putin’s decision worked, can other countries repeat this experience? – Nobody trusted the system of payment in dollars. Americans used this system to threaten and monetize others. We are not the only country that got into a fight in the United States, just Russia was the first to come out and say it is not afraid [противостоять этой системе]. By his decision, Putin demonstrated that it is possible to switch to settlements in national currencies and abandoned the dictates of the United States. – Putin stressed that Russia sells gas in Europe below current spot quotes. The United States is trying to profit from global instability and wants to convert Europe to its expensive liquefied natural gas. It turns out that European elites do not think about their citizens, and Russia, represented by the president, thinks about European gas consumers, guaranteeing the fulfillment of contracts? – By his actions, Putin is protecting ordinary Europeans. In Europe, there is a sales elite interested in buying expensive [американский] gas. There is blue fuel from Russia and gas from the United States, which is imported at a reduced price. Let’s imagine that Russian gas costs 10 euro cents and American gas costs 17. The European elite is interested in buying expensive gas, and Putin says this is unfair. When he says that, who is he protecting? An ordinary European. Of course, there are politicians in Europe who think of their constituents who have not sold their conscience, but the dominant part of the Western elite does not think of their citizens – this is true. – That is, it is more profitable for Europeans to buy gas from Russia, if you do not take into account the policy? – It’s a question of price, speed and reliability. Gas from Russia is more profitable. If you get it through a pipeline, you don’t even think about where to store it, it flows and reaches the consumer. Storage and liquefaction terminals need to be built for liquefied gas. – German Chancellor Olaf Scholz and French President Emmanuel Macron refused to pay for gas in rubles, but when the Russian leader announced the payment for blue fuel in Russian currency, they changed their minds. Why did this happen? – They played a political game. Neither Macron nor Scholz are CEOs of companies that buy gas. Our president can instruct Gazprom, a state-owned company, to sell gas there for so much. And through corporate procedures this order will be fulfilled. Scholz cannot tell any German company how much to buy gas for and from whom. European politicians tried to score political points without agreeing to switch to paying for gas in rubles, but they did not succeed.

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