September 29, 2022

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India, Oil and Yuan: This is how Putin prepares for a counterattack on the United States

An unexpected new rescue cake for Russia. At a time when the West is trying to isolate Moscow’s economy economically, the spotlight is shedding light on the movesIndia. Which could partially rehabilitate the Kremlin.

Indian variant

According to the Indian TV channel, CNBC TV18India will consider buying raw and others Raw materials From Russia at reduced rates, as well as counting on rupee and ruble transactions. Apparently, the offer could have come from Russia due to the Western sanctions it was subjected to following the invasion of Ukraine. Remember that New Delhi imports 80% of its oil needs, and the share of 2-3% of these imports comes from Russia.

complicated situation

The situation for Moscow is very complex. as pointed out Corriere della SeraThe Russian government has to deal with the freezing of euro reserves, dollar And the pounds or pounds for weight from its central bank. In other words, Russia is not able to use the most important international reserve currencies. This means that no Russian entity – including the state and corporations – can repay foreign debts or pay for imports in any of the above-mentioned currencies.

Anyway, Russia will soon prepare a payment order in rubles to repay him external debt, if unable to pay it in foreign currency. This was announced by the Russian Finance Minister, Anton SiluanovIn an interview with a TV channel Rosega 24. “Implementing the expected repayment in these currencies may be difficult under the current conditions of freezing gold reserves for those currencies. However, this will depend on the ability of these Western banks, in which the accounts of the Russian Federation are located, to implement this order. In case of difficulty, tomorrow Tuesday we will prepare the corresponding payment order in rublesSiluanov said. The minister later added that this is the case Chinese yuan It is one of the foreign exchange reserves of Russia and will be used.

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Putin’s wild card

In such a scenario, Russian President Vladimir Putin He is in business to bring down his personal clown. It is alleged that Moscow is trying to persuade the emerging powers to abandon their dollar transactions. Here, then, is what could happen. Moscow is in contact with New Delhi to persuade the Indian government to sell Siberian oil To offset the decline in sales to Western countries.

Thus India will go to buy Russian crude oil at a discount, given that a large number of operators are turning away for fear of being subjected to sanctions. But using what currency? Not the dollar, which Russia can no longer receive (it will be waste paper), but the ruble based on the floating exchange rate with the Indian rupee, which in turn depends on The third cointhe yuan, as a reference point.

The importance of the yuan

In short, Moscow sharpens its weapons and goes to counterattack After encircling the sanctions of hostile countries that risk freezing the market and obstructing Russia. For now, as highlighted by a filehandlePutin’s only lifeline exists China After half of the Bank of Russia’s gold and currency reserves – about $300 billion – were frozen under sanctions. Frankly, Finance Minister Siluanov made it clear that Moscow is betting on everything “Chinese yuan, a reliable reserve currency“.”We will use a share of gold reserves and currencies denominated in yuan“, how “The source of foreign exchange reserves for our country‘, he finished.