plaindealer:



The planet where intelligent people discuss with facts and credible news articles instead of silly, ignorant and pointless words of mouth and meaningless opinion.

Google is your friend is what people say when they lack sensible things and facts to work with.

It is just symbolic. Germany can't even get from Qatar 10 percent of her current supplies from Russia more less whole Europe.
There is no alternative to cheap Russian gas or you want protest across Europe because of inflation

Hezzyluv:


Lol....
The one wey dey warri plenty and n fuel cost8)

Mumu. Those are imported.

Hezzyluv:
Walaii.... This man no just get sence. Prior to his invasion on Ukraine, a lot of people don't even know the unit of Russian currency.

Swallow your pride and allow peaceful negotiable approach to this your madness Because, as it stands you have put your country into retrogression economically

The sanctions of the West against Russia is a double edged sword, it is just a matter of time before it collapses the entire global economy. Russia is not Iran, neither is it North Korea, the financial markets are already feeling the ripple effects, it will disrupt the international global logistics supply chain, Poorer nations will feel the effect of Ukraine - Russia conflict. That is why US does not want China to support Russia, China supporting Russia will spell doom for the West economically especially the European Union Countries.

GerogeI:

You got it wrong.
When you buy Russian Rubble with Euro or USD, you have to send the money to Russia, to sit in Russian Central Bank. So your Govt. have to authorize you to exempt their sanctions against Russia.

The more surplus Euro or USD Russian CB has, the more the value of the Rubble, the more Russia can bypass all sanctions to buy whatever they want from US or Europe by simply routing cash through other countries. Cash is king.

When you buy oil from Russia, you have to pay in Euro or Dollar.
Did you think Russia was selling oil for free?

Neither Europe the US has sanctioned Russia's energy exports, so Putin's oil money
have not ceased flowing since the invasion.

mrmacdon:

The will have to exchange it with goods, it the want rubles the will get a product that Russia want and Russia will give Dem rubles.

Nope, go and read about balance of trade.
They will not exchange with goods.

Praxtech:

You copied this from twitter

Mr. Twitter founder, there are many dull or plagiarist on Twitter too just like any other platform.

Just because something is on Twitter doesn't make it original or even sensible.

Perhaps someone wrote something similar(not words for words), then it makes zero sense to assume
that basics economics is only be understood by users of the 160 characters platform.

gambojimeta:

Don't worry. It's a matter of time. Europeans are not Africans who are lazy thinkers

I am only upset that Nigeria is not even a player in the global industry to take advantage of this gas wealth.
.

You're wrong bro, Nigeria is a big part. Why do you think China want us more? Why is the North (Muslim) brothers so bothered about Nigeria unity as one Nigeria? Whatever happened to our NLNG plants
I blame foolish Britain who came and colonize our fathers. When stupid British empire were busy coming to Africa, going to Asia,Latin America and all commonwealth taking territories, Muhammad was busy sending ships of army to secure territories with oil. Foolish Brits thought they were wise since Africa has diamond,gold but forget the future was oil. Today look at Arab countries,even the least being Irag,they've got oil to sustain them, even rank on the world's top 15 gas reserves. Beautiful countries like Qatar, Saudi Arabia,Iran, UAE, Kuwait, just all of them in the middle East are dam rich. What did France got,or Netherlands or Hungary that Muhammad have interest in? Even in Africa,check out Senegal, Nigeria,and countries with oils, Muslim are everywhere directly or indirectly there. Muhammad was a genius while are foolish emperors were stupid focusing in slavery. Today they're using their secret tech,weapons,and stupid corrupt democracy to cause modern slavery by pushing you to risk crossing the Mediterranean,and boarders just to get better life. Yet they're secretly fighting illegal war with weak nations to get their resources. God bless Russia for defending poor countries, God bless China who brings us from captivity of the western tech monopoly, God bless our G boys who are dealing with them to get back what they stole from our fathers. The future is gas. If you have natural gas reserves,if you love your state,secure it. Nigeria is blessed. Even sanctions on us will be like Russia no impact if we utilise what we have efficiently.

MT:


You are missing the point. Imagine if roubles appreciate but Russia needs more dollars in their reserve to do many things which they are lacking now. It makes no sense.

International transactions are settled in dollars. Let me tell you if you don't know, when you have million of naira in your account and you pay for your air flight using your bank card. The payment is honoured because the airline knows that Nigeria has enough dollars in her reserve to settle on your behalf through the CBN. If you are a billionaire in Nigeria and there is little or no money (USD) in the country reserves, attempt to pay for flight, education abroad and anything foreign, your payment will be declined because you can't settle your bills in naira, it's CBN that must settle on your behalf in dollars from the reserve.

Russia is hurting badly, lack of access to dollars is a serious game changer

If you pay for an air flight with your card the payment is simply converted to the dollar rate and not because your CBN has dollar to pay them. If I'm buying from Amazon at the rate of one dollar. Then I expect roughly 500 Naira deduction using my debit card.

Gertyman:


Your analysis is wrong. Let's assume EU nations, the US, and other countries buying gas from Russia are sourcing for Russia's rubble to pay for Russian Gas. How will Russia pay for what it doesn't produce? Is rubble part of world's reserved currency? because you have to peg your foreign reserve/currency against another currency, that's economics.

Russia economy has two challenges , locally the people in Russia are complaining about inflation. And that's central for Putin. Secondly much of Russia's foreign reserves is frozen as they cannot access the dollars in which they have saved them in foreign countries.

Russia understands that it's not an import economy, where by it will need the dollars to buy foreign goods. Plus with the demand for Rouble inflation rate is bound to drop over time for its people

M7even:

If you pay for an air flight with your card the payment is simply converted to the dollar rate and not because your CBN has dollar to pay them. If I'm buying from Amazon at the rate of one dollar. Then I expect roughly 500 Naira deduction using my debit card.

You don't know how this works. For everything you buy, CBN guarantees the payment. It's not because you have naira equivalent, it is because CBN has enough to settle your bills in dollars.

Nothing concerns the company abroad with your naira, CBN will make deduction from your naira account and settle your bills from the dollars in the reserve. That's why Govt discourages people from importing goods and services because you are putting pressure on the naira and reducing the dollars in the reserve.

LordReed:


There was need. China has been making overtures to them to engage in a new regime of international monetary settlements. You think Europe won't have sat up and took notice. I think negotiations would have yielded a no-NATO-for-Ukraine agreement very quickly. He squandered his chance and now they will spitefully call his bluff.

Well, all the events are live. Let's watch as it unfolds. But this current situation will challenge and shake the world and probably change some things we use to know

M7even:


Russia economy has two challenges , locally the people in Russia are complaining about inflation. And that's central for Putin. Secondly much of Russia's foreign reserves is frozen as they cannot access the dollars in which they have saved them in foreign countries.

Russia understands that it's not an import economy, where by it will need the dollars to buy foreign goods. Plus with the demand for Rouble inflation rate is bound to drop over time for its people

Russia only has wishful thinking. Italy, the second biggest buyer of Russia oil has declined to pay in rubble. Germany has threatened to take Russia to court of arbitration. It is a contract and one man can't wake up to change the terms. This is purely business and Putin can't wake up to use EU to prop up its fast falling currency.

Idaytesj29:


Well, all the events are live. Let's watch as it unfolds. But this current situation will challenge and shake the world and probably change some things we use to know

It will but it won't be a net positive for Russia.

plaindealer:



The planet where intelligent people discuss with facts and credible news articles instead of silly, ignorant and pointless words of mouth and meaningless opinion.

Google is your friend is what people say when they lack sensible things and facts to work with.

What kind of a human being is this, even to use Google is hard for you.

https://amp.theguardian.com/world/2022/mar/20/germany-gas-deal-qatar-end-energy-dependency-on-russia

Read the details and understand this is an empty political gesture. Germany is not ready to give up Russian gas.

Qatar LNG can diversify German energy supply, adding another possible source should Russia shuts its gas lines. It will not replace Russian gas as it is even much costlier. The deal you are talking about is an empty political move to pacify anti-Russian sentiments, its for LNG that Qatar is not even producing yet, they are expected to complete the facilities to produce about 7.8 mtpa more by 2025. There are no specific company or money contracts behind this deal. This is the oil industry, what ever they are producing now is being supplied to someone already.

In layman's term, (as I see you have no clue) Qatar, has agreed that if they finish building their ongoing LNG facility, they will give German companies, priority to buy the LNG, not exclusivity. This LNG would have been bought by a European company or a Chinese company either way and would go into reducing world oil consumption, not gas consumption. There is no volume mention in the deal, we know Qatar cannot replace Russian volumes either, not just because of OPEC, but because its not financially feasible, even as demand keeps growing.


For your reference, last year, Germany bought 53.4 billion cubic feet of gas from Russia. Qatar is planing to add only about 7.8 million tons of LNG capacity by 2025, thats just about 11.3 billion cubic feet of gas equivalent. Even if they give everything to Germany, it still won't wean them of Russian gas as it will leave 42.1 billion cubic feet deficit in gas supply.

Learn to use your brain

LordReed:


It will but it won't be a net positive for Russia.

Neither will it for the West too. They will all go home counting their gains and losses.

ivolt:

When you buy oil from Russia, you have to pay in Euro or Dollar.
Did you think Russia was selling oil for free?

Neither Europe the US has sanctioned Russia's energy exports, so Putin's oil money
have not ceased flowing since the invasion.

Not sure I get your point, as you are not clear.

There is no rule or law that says you have to pay for anything in any particular currency. The seller determines what currency you pay in. The use of USD is just a tradition that no one has been interested in breaking. But Russia today says it will henceforth sell I Rubbles. Just like European countries around the 90s introduced Euros to help them stop needing USD. So they insist you buy their cars and machines in Euros.

Idaytesj29:

Neither will it for the West too. They will all go home counting their gains and losses.

It will for the West because they are standing together. Look at it all the non aligned countries close to Russia are now strongly considering joining NATO. Also the Euro will come out stronger.

Biafran4life:
Very good move

Apart from Oil and gas what is Russia's economic mainstay. What if Europe abandon Russia's Oil and gas? I see Russian economy crumbling in a year time.

GerogeI:

Not sure I get your point, as you are not clear.

There is no rule or law that says you have to pay for anything in any particular currency. The seller determines what currency you pay in. The use of USD is just a tradition that no one has been interested in breaking. But Russia today says it will henceforth sell I Rubbles. Just like European countries around the 90s introduced Euros to help them stop needing USD. So they insist you buy their cars and machines in Euros.

What is not clear?
Putin claimed he won't accept "compromised" currencies and I made it clear
that his pronouncements comes from a place of ignorance as he has no choice.


Maybe I am wrong perhaps you could enlighten us on how a European buyer can pay Putin in
Ruble without any use for US dollar or Euro.

BTW, US dollar is not used for just convenience. I wouldn't want to get into the details.

Taigaban:
Apart from Oil and gas what is Russia's economic mainstay. What if Europe abandon Russia's Oil and gas? I see Russian economy crumbling in a year time.

How about wheat?

Iron nkor?

Use google oga

LordReed:


It will for the West because they are standing together. Look at it all the non aligned countries close to Russia are now strongly considering joining NATO. Also the Euro will come out stronger.

These are calculations. You can only count on what's done already. Relations are volatile at the moment. You don't know which alliance will stand the test of time or change with period. A new world order or a bipolar international system might just be upon us at the moment

Idaytesj29:


These are calculations. You can only count on what's done already. Relations are volatile at the moment. You don't know which alliance will stand the test of time or change with period. A new world order or a bipolar international system might just be upon us at the moment

Indeed but by all calculations the Western alliance got stronger while Russia got knocked down several pegs and has no strong alliance aside from Belarus and Chechnya who are basically vassal states to Putin. Even China is look into the Russia situation like a vulture looking at a diseased cow not as an ally.

ivolt:

What is not clear?
Putin claimed he won't accept "compromised" currencies and I made it clear
that his pronouncements comes from a place of ignorance as he has no choice.


Maybe I am wrong perhaps you could enlighten us on how a European buyer can pay Putin in
Ruble without any use for US dollar or Euro.

BTW, US dollar is not used for just convenience. I wouldn't want to get into the details.

I doubt you can give any details, since you do not even understand international currency exchange. There is no law on which currency to use. Its just a trend that people increasing switched to pricing in USD, plus back door indirect bullying by US through USD denominated loans which third world countries have to pay back. I hope you know Europeans introduced Euro to rival USD and have been trading in Euro since the 90s.

Countries that are manufactures like to sell, hence tend to depress their local currencies to make their goods cheaper. Sometime in the 2000s the BRICS came together to launch another preferred currency, The US threatened them with all sorts of things individually. Today, Russia is simply saying, we have already fallen out with you, and you have used your so called sanctions (which is essentially that the US has majority control over many international organisation, which at the end of the day are associations not laws. UN is an Association, there are countries that do not belong to it.), Russia says we will now trade in our currency, just like Europe is doing.

What it means is this?

Before, If you are in Germany and want to buy Russian oil, You just sign a contract and wire you local currency Euro to Russia, and Russia will accept the payment and the money may not even get to Russian Gazprom, but may just sit in an account they have with a bank in Germany, till they decide they want to use the money for this or that. This money is what Europe says they have frozen.

Now, with Russias new pricing, they are no longer offering buyers that easy convenience because after all you can't do without their gas. So if you are in Germany and want to buy Russian gas, you will first contact a Russian bank to exchange what ever currency you have to Rubble. That your currency will flow straight to Russia and sit with the Russian Bank, under oversight by their central bank. They will later issue that currency to their people who want to buy things from Europe in Euros. You mean while will go to Gazprom and pay your Rubbles for the gas.

How it affects the sanctions?

1. European countries will be forced to bypass their own sanctions in order for their Euro to get to Russia so they can buy gas.

2.European energy companies will be holding a lot of Rubbles in Russian banks, which Russia can target in future for retaliatory sanctions.

3.Russians holding Euro and USD outside Russian banks will be mainly private company importers, no longer the Govt. owned oil exporters, so rooms for future currency sanctions against Russia by US or Europe will greatly reduce.

MT:


You don't know how this works. For everything you buy, CBN guarantees the payment. It's not because you have naira equivalent, it is because CBN has enough to settle your bills in dollars.

Nothing concerns the company abroad with your naira, CBN will make deduction from your naira account and settle your bills from the dollars in the reserve. That's why Govt discourages people from importing goods and services because you are putting pressure on the naira and reducing the dollars in the reserve.

This is Unique to Nigeria, where you have over centralization and the government insists that Naira is not a legal tender outside Nigeria. For other countries, private financial companies assure currency exchange, central banks only hold strategic reserves to ensure things run smoothly always

MT:


Russia only has wishful thinking. Italy, the second biggest buyer of Russia oil has declined to pay in rubble. Germany has threatened to take Russia to court of arbitration. It is a contract and one man can't wake up to change the terms. This is purely business and Putin can't wake up to use EU to prop up its fast falling currency.

If they do not pay, they will live I cold for about 3 months, people will protest, the government will change hands from internal politics and they will still pay the Rubble eventually . This one is just initial gra gra. They will pay Rubble.

5thcolm:

Is like you don't know western europe don't have many people there to use much oil. For example Germany only uses 2.4 million barrel a day. Compared to the US using 19 million barrel a day.
Whichever way, Russia is only selling oil on discount now.

The population of America is about 3.5 times that of Europe. Also, Germany taxes refined oils heavily discouraging its use unlike America where it is taxed lightly.

Anyway, 2.4m barrels of oil daily still matters. Just thinking of the pain the recent petrol scarcity brought on Nigerians you'd realise a scarcity is going to hurt real baaaad. Nigeria probably uses a quarter of Germany's daily demand.

ivolt:
Some smart bloke is messing with Putin's head.

If Russia will only accept Rubble, that means the buyers must get Rubles somehow.
Since buyers can't print their own Ruble, they have to buy it and guess with what currency?
Euro or Dollar of course and we are back to square one.

While this move will prop up the value of Ruble a bit, it won't save Russia's economy in the long run
should the invasion continue.

When the countries pay in dollar, do they also print dollars in their country?

M7even:


Russia economy has two challenges , locally the people in Russia are complaining about inflation. And that's central for Putin. Secondly much of Russia's foreign reserves is frozen as they cannot access the dollars in which they have saved them in foreign countries.

Russia understands that it's not an import economy, where by it will need the dollars to buy foreign goods. Plus with the demand for Rouble inflation rate is bound to drop over time for its people

Are you in Russia? Or you're following what CNN & BBC is misleading you? I hope you watch the crowd in stadium that turn out to support Putin? Do they look like people hurt? I have a friend who is studying chemical engineering there,told me last night live is going as nothing bothers them. The have their RT news, Arab news, Chinese news and others like fox news, etc. Not CNN or BBC as seen in your DStv & Gotv. Some of these news are using russian language. So whatever you're spilling,you're ignorant of what is going on there because you're not there. The whole of Europe is protesting as price goes higher everyday, BBC and CNN aren't covering that. Dig well before you spill what you don't know.

LordReed:


Indeed but by all calculations the Western alliance got stronger while Russia got knocked down several pegs and has no strong alliance aside from Belarus and Chechnya who are basically vassal states to Putin. Even China is look into the Russia situation like a vulture looking at a diseased cow not as an ally.

I honestly do not want or pray that this situation escalates, cos it will be a doomsday thing. But only that escalation will tell us who is supporting who and who is ready to call her army in support of who. China had been a long term friend of the Soviets or Russia, as its stand, nothing or not much has changed about that. In fact, China stated recently that relations between Moscow and Beijing is rock solid.

So, US and NATO are free to do whatever with Russia. They should go ahead and bomb her, its evident Moscow wouldn't stop the pursuit of her interest. All the West can send their troop and missiles to Russia, assasinate Putin or bomb Moscow. Atleast they have the capacity to do so and does not need anyone's permission for that to be done. "Level this overrated, economically decimated, militarily weakened Russia and kill the crazy dictator Putin with their superior western firepower, sanctions, connections etc" As Russia is an Isolated, and hated entity of a state around the world, no country will aid or support her, it will Russia against the world, in fact her citizens hates her and even carry arms and fight against her in support of NATO and US.

[/b]Unless, Ukraine agrees to terms which are withdraw NATO membership intention, Cede Crimea to Russia, approve independence of Donbass and surrender To Russia. The crisis will not abate, no matter what US and the West do. It will be deadlocked. War or no war, intervention or not, sanctions or not.[b]

GerogeI:


If they do not pay, they will live I cold for about 3 months, people will protest, the government will change hands from internal politics and they will still pay the Rubble eventually . This one is just initial gra gra. They will pay Rubble.

Contract does not work that way. You can't unilaterally breach a contract you have previously agreed on. There's a process that needs to be followed to change a contract. Russia is risking big fine from the court of arbitration. You will see how it will play out

Idaytesj29:


I honestly do not want or pray that this situation escalates, cos it will be a doomsday thing. But only that escalation will tell us who is supporting who and who is ready to call her army in support of who. China had been a long term friend of the Soviets or Russia, as its stand, nothing or not much has changed about that. In fact, China stated recently that relations between Moscow and Beijing is rock solid.

So, US and NATO are free to do whatever with Russia. They should go ahead and bomb her, its evident Moscow wouldn't stop the pursuit of her interest. All the West can send their troop and missiles to Russia, assasinate Putin or bomb Moscow. Atleast they have the capacity to do so and does not need anyone's permission for that to be done. "Level this overrated, economically decimated, militarily weakened Russia and kill the crazy dictator Putin with their superior western firepower, sanctions, connections etc" As Russia is an Isolated, and hated entity of a state around the world, no country will aid or support her, it will Russia against the world, in fact her citizens hates her and even carry arms and fight against her in support of NATO and US.

[/b]Unless, Ukraine agrees to terms which are withdraw NATO membership intention, Cede Crimea to Russia, approve independence of Donbass and surrender To Russia. The crisis will not abate, no matter what US and the West do. It will be deadlocked. War or no war, intervention or not, sanctions or not.[b]

No reasonable leader will agree to those silly terms from Putin. Let's see who blinks first.