Business Hub Research – News Agencies
The Russian ruble has subjugated about 54 foreign energy companies linked to contracts with the Russian company “Gazprom”. These customers opened accounts to make payments in Russian currency instead of in euros and dollars.
Russian Deputy Prime Minister Alexander Novak said Thursday, About half of “Gazprom” customers of foreign companies have opened accounts in rubles to make payments.
He explained that “54 companies associated with contracts with Gazprom Export have agreed to open accounts in rubles,” He added, “According to the figures, about half of gas customers have opened accounts in our banks for hard currencies, in preparation for converting them to the ruble.”
and last month, Russian President Vladimir Putin was shocked, European governments and markets demand that gas be paid for in rubles through a complex mechanism that involves setting up two linked bank accounts to handle the foreign exchange transaction.
Prompted by the response of some gas buyers to Moscow’s demand to pay in Russian currency, The ruble rose Thursday against the dollar, It rebounded towards a 5-year high against the euro.
The ruble became the best performing currency this year despite a severe economic crisis. He was artificially backed by restrictions Russia imposed in late February to protect its financial sector after it sent tens of thousands of soldiers to Ukraine.
And despite the European Commission’s warning that Russia’s ruble-imposing mechanism is a way around the sanctions, Emphasizing the need to dispense with Russian oil, Some countries of the bloc rushed to maintain their supplies of Russian gas by opening accounts in rubles.
The Italian oil giant Eni announced: Tuesday, Opening an account in euros and in rubles with “Gazprom Bank”.
As German Economy Minister Robert Habeck emphasized, that Germany cannot now impose a ban on natural gas supplies from Russia, Because this would create “economic problems, including high prices and disruption of trade chains.”
As a consequence, The European Union plans to invest 300 billion euros to get rid of Russian fossil fuels, To end dependence on Russian oil and gas.
European Commission President Ursula von der Leyen said on Wednesday: The European Union intends to mobilize investments of up to 300 billion euros by 2030, to end its dependence on Russian oil and gas, According to “Reuters”.
German economist Achim Troger warned of the repercussions of the Russian gas embargo on his country’s economy. He said a ban like this would lead to a deep recession and collapse of the German economy.
He pointed out that stopping Russian gas supplies could lead to the loss of 500,000 jobs in Germany. It will also plunge the country into a spiral of inflation. According to German television, “NTV”.
and last week, Ukraine said it would suspend the flow of gas passing through its territory through a transit point that transports nearly a third of the fuel transported from Russia to Europe. She blamed Moscow for the move. Saying it will move the streams to another location.
But Gazprom which monopolizes Russian gas exports through pipelines, She said it was “technologically impossible” to convert all sizes into a Sudja anchor point, further to the west, As suggested by the Ukrainian company “Jetsu”.
Russian energy security expert Vladimir Igor says: “The decision of the ruble has economic objectives, including increasing the demand for the Russian currency, It also has a symbolic meaning that comes in the context of Russia’s attempt to break the dominance of the dollar and the euro.”
He added to “Sky News Arabia”, The ruble’s move was made to remind the Europeans of their degree of dependence on Russian resources, especially gas, Because they persist in imposing sanctions and at the same time claim their readiness to give up Russian gas.”
Regarding the Ukrainian decision, he asserts that it “may cause a new gas crisis at the European level.” Adding: “Maybe a crisis similar to what happened in 2006 and 2009 may await us. In the so-called first and second gas wars, which have put the fuel supply to the European Union at risk.
The European continent depends on Russian gas supplies for more than 40 percent of its energy needs.
The Russian currency had risen by 11% against the US dollar in a boom explained in particular by the capital controls imposed by Russia. Which makes it the best performing currency in the world this year
And the US Bloomberg Agency said on May 11, 2022 that the ruble witnessed a sharp rise in 2022 by more than 11% against the US dollar, becoming the first global currency among the 31 currencies studied by Bloomberg.
These gains are due to a series of measures taken by Russia to circumvent Western sanctions that resulted from its invasion of Ukraine. Among the measures are capital controls, the sale of foreign currency to exporters, and the payment in rubles for natural gas