©Reuters. Experts believe that Moscow seeks to strengthen its currency by demanding payments in rubles
Madrid, March 24 (.).- Analysts agree that Russia’s decision to accept gas payments only in rubles has a clear objective, which is to increase the value of the currency that, during the invasion of Ukraine, and as a consequence Western sanctions, it depreciated 67% against the dollar.
Russian President Vladimir Putin announced yesterday that the country will refuse to pay for Russian gas in foreign currency, including the dollar and the euro, and that supplies to “unfriendly” countries, including those of the European Union, will be charged only in rubles. European (EU), US or UK.
The analysts of Bankinter (MC:) They explain that this decision forces the purchase and appreciation of the currency.
Likewise, the IG analyst Sergio Ávila is forceful and assures that the decision announced by Moscow only seeks to increase the value of the ruble, which yesterday, and after the measure was published, appreciated more than 8%.
“If (Russia) only accepts payment in rubles, the companies that want to buy from the country have to acquire this currency to pay for the transaction,” which, in Ávila’s opinion, would increase the demand for the currency, and therefore its price.
This, he adds, would help Russia to import goods from other countries such as China, paying less rubles in exchange for imported goods.
In his opinion, with this decision, the country’s economy would benefit from a higher value of its currency, while it would continue to export its products and meet its international debt obligations.
For Ávila, after the measure adopted by Moscow, the response must now come from the countries that purchase oil and gas, which must decide whether to accept this rule or not.
“They must reject these demands and not buy more crude so as not to continue financing Russia and its invasion of Ukraine, despite the cost that this will have on inflation, or continue doing so and give it more time for the war to continue advancing,” he warned. .
After Putin’s announcement, the price of gas has risen, since, as Renta4 analysts explain, Moscow’s demand to demand payment in rubles could cause “the necessary renegotiation of contracts, which could in turn generate disruptions in supply”.
“Hence, investors are pricing in a possible reduction in supply, which is pushing prices higher. In addition, today’s G-7 and European Council meetings are expected to result in new sanctions against Russia,” Ávila, from IG, added.
The price of gas rose more than 12% yesterday, and this Thursday they advanced another 9%.