quietviper0 said:What does "squeeze out more Euros" actually mean here? In what way do the Russians walk away with extra Euros through this specific payment scheme? 🤔
The unit price is actually denominated in Euros, not Rubles, along with everything else. Based on what we know, it's pretty much tied to the TTF hub everywhere...
As for the exchange rate the bank uses to convert those Euros into Rubles, nobody in Europe is looking at it, let alone worrying about it, so when you combine that with the previous post about them "taking more Euros," the actual purpose behind it all remains a bit fuzzy to me...
That directive from back in the spring didn't actually mandate paying in Rubles. What it did was introduce a bit of marketing spin while simultaneously ensuring that one specific bank stays clear of sanctions, making sure those Euros don't get stuck in Europe but instead head straight toward Washington, D.C., via this supposed currency conversion...
So, I find myself wondering why this conversion is being treated as some sort of trick, and why none of us seem concerned about what exchange rate is being used? From our perspective, it honestly doesn't matter if they turn 1 Euro into 200 Rubles, or if they turn it into 60 and pocket an extra 140, or even if they turn it into 20 and just leave it at that... We aren't buying Rubles; they are simply conducting their own business however they see fit...
In short, it doesn't affect our pockets one way or the other...
A different scenario would be if we were actually forced to buy Rubles and if prices were strictly set in Rubles. There wouldn't be any open markets or free trading to fall back on; you'd just be at the mercy of whatever the central bank decides to offer. Personally, I don't think that's an unrealistic possibility to consider as we approach winter...
When the Ruble payments were first announced, the direction of the maneuver was obvious. Paying in Rubles while the price remains expressed in Dollars is merely a temporary setup; it's illogical. It was a tactical preparation for the endgame, where they can convert funds at a rate of their own choosing, thereby exerting significant influence over the price—or more accurately, beginning to inject politics directly into gas trading.
They weren't intimidated—they deal with traders far more experienced than themselves. Through gas trade, the Russians attempt to impose their political will. The West, conversely, has no patience for such arrangements—which are essentially extortion. Extortion, creating dependency, and demonstrations of force are the fundamental tools and methods of the old intelligence services (when ideological support fails). You can see the heavy fingerprint of the secret service in these methods and decisions. It seems the Russian intelligence apparatus fails to realize they aren't dealing with a single individual here, but with an entire bureaucratic-political system that has highly developed methods of operation and influence.