Putin, defying the calls that he was just bluffing, has now decreed that beginning tomorrow, April 1st, that nations and companies must purchase their natural gas via their currency, the Ruble.
What does this entail? It means that, reported by ZeroHedge, that while Russia will still supply gas at a set volume and price, but forces buyers to open up new accounts through Russian banks, and will not sell their fuel unless the purchaser does it with Rubles. The edict can also block further transactions in Euros or American Dollars.
Putin explained that active contracts will undergo forced majeure if the demands are not met, further noting that this step is meant to increase settlements in Russian money.
Because of this move, ZeroHedge documented that earlier this morning that prices for U.S. natural gases took off like a rocket, ‘perhaps in anticipation that much of US output will now be LNG-ed over to Europe, potentially creating a US shortage in due course…,’ ZeroHedge wrote.
The Ruble’s value has undergone a “V-shaped” recovery in value, as it now appears Western powers will have to start buying up Rubles in order to make transactions, thereby increasing the value of and prevalence of the Russian Ruble.
The Economic Ninja, commenting on this development, notes that Russia was Europe’s primary supplier of natural gas prior to the Russia-Ukraine debacle, and yet were still warning of an energy crisis. And now, “Russia is probably literally sitting back laughing,” he said, as they know that they can sweat ’em out. And if this were to have happened in the winter, the effects would even be far worse.
The Economic Ninja additionally notes that there are other commodities that Russia is a heavy exporter in to the West, so it would stand to reason a similar thing would pan out. But in short, he makes it clear the seriousness of this situation, noting that just with the restrictions levied against Russia and how it is affected the Western civilians, this move will also affect the Western peoples too, not the wealthy and bureaucrats.
Also commenting on the effects of this, British financial advisor Neil McCoy-Ward echoed a similar sentiment, and cited a report from the BBC that discussed how Germany and Austria recently announced the need for fuel rationing. ‘Germany gets about half of its gas and a third of its oil from Russia and has warned that it could face a recession if supplies suddenly dropped,’ the BBC article warned. Austria gets 80% of its gas from Russia.
But it’s not just them who rely heavily on Russia’s fuel exports:
- France: 20%
- Bulgaria: 90%
- Poland: Approx. 50%
- Greece: Roughly 40%
- Italy: Near 40%
- The Netherlands: 15%-20%
- United Kingdom: 3%
But getting back to Germany, McCoy-Ward cites another piece that explains that if Germany begins to ration fuel, their economy will implode; and estimates that it would take two years to be independent from Russian fuel, based on other reports.
He notes at the end of his report that the U.S. is sending large quantities of diesel to Germany right now, in attempt to alleviate some of their acute problems.
International Energy Agency Calls For ‘Car-Free Sundays’ And Other Ways To Reduce Oil Use
AUTHOR COMMENTARY
Get ready to see this symbol at lot more:
As The WinePress has been covering, these restrictions were only designed to hurt the people, to wit the Western peoples. And now the fuel shortages will undeniably be coming, as the Russia takes preeminence, as I have said would happen. The East will win, not the West.
Moreover, with diesel being rushed over to Germany, that translates to fuel costs in America ripping higher, causing even more problems for farmers and transporters.
This is a systematic culling and desolation against the West, from the Lord, because the nations have rejected his word, the King James Bible, and continue to do abominably. Therefore, I beseech you, and I urge to take heed to the warnings, and make the necessary preparations.
[1] Then said the LORD unto me, Though Moses and Samuel stood before me, yet my mind could not be toward this people: cast them out of my sight, and let them go forth. [2] And it shall come to pass, if they say unto thee, Whither shall we go forth? then thou shalt tell them, Thus saith the LORD; Such as are for death, to death; and such as are for the sword, to the sword; and such as are for the famine, to the famine; and such as are for the captivity, to the captivity. [3] And I will appoint over them four kinds, saith the LORD: the sword to slay, and the dogs to tear, and the fowls of the heaven, and the beasts of the earth, to devour and destroy.Jeremiah 15:1-3
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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