3 ms·
I guess that depends on how the price of a cubic foot of gas was negotiated. Did they set it up to $ and then just converted to rubles at payment. Or was it se
by Raed667 5y ago
I guess that depends on how the price of a cubic foot of gas was negotiated.
Did they set it up to $ and then just converted to rubles at payment. Or was it setup in rubles and then you convert to the buyers currency.
- weinzierl 5y agoThat is the interesting question but regardless of the answer and considering the current exchange rate I only see that in one case it should be to the detriment of Russia in the other case it should not matter. What am I missing?
- maratc 5y agoImagine it was negotiated at dollars but now Russia demands rubles at a rate of 1:1.
- rdtwo 5y agoThen it’s like giving away free gas. They probably want it at current market rates what ever those are 1000:1 1m:1 that will help remove excess rubles out of the system.
- maratc 5y agoThat's exactly the opposite. Imagine you need 100 Rubles to pay for 1cf of gas. But you don't have rubles, you need to buy them. Would you rather spend $1 (given a rate of 1:100) or $100 (given a rate of 1:1) to pay for that 1cf of gas?
- rdtwo 5y agoBut you can buy them on the “market” black or otherwise so you ideally buy up as many as possible and give them back to the Russians for disposal. That creates demand for the currency and is the reverse effects of printing money.