Former Russian president Dmitry Medvedev spoke of the emergence of a “new financial order” today as more countries move away from the dollar as the world currency.

He described Western efforts to impose “hellish sanctions” on Russia which have escalated since it invaded Ukraine last month as “fruitless” and claimed they would have minimal impact, despite soaring interest rates and a stampede of major firms from the country.

“The world is gradually moving towards a new logic of global relations,” the deputy chairman of the Russian Security Council said.

“It is impossible to trust those who freeze the accounts of other states, steal other people’s business assets and personal possessions, compromising the sanctity of private property,” he added.

Russia announced earlier this week that as of today, it will only accept payments for gas in roubles from what it deems “unfriendly countries,” including the United States and those in the European Union.

India is considering an offer to use an alternative to the global Swift cross-border payment system developed by the Russian Central Bank to make bilateral rupee-rouble payments.

Discussions are set to take place on Thursday as Russian Foreign Minister Sergey Lavrov arrives in the capital Delhi for a two-day visit.

China and Saudi Arabia have already announced that they are considering a move away from the dollar in oil transactions, with a possible switch to the yuan.

Washington fears the decline of the dollar as the global currency, as it would lose the ability to control world financial markets.

But Mr. Medvedev said the actions of the U.S. and EU in the wake of Russia’s invasion of Ukraine — including freezing nearly half of the Russian Central Bank’s reserves — had “tarnished their reputation.”

“The era of regional currencies is coming,” he said, warning that they would have to negotiate a new financial order “no matter if they want it or not.”

The economic restrictions were placed on Russia in retaliation for its war on its neighbor launched on February 24.

Battle is continuing despite signs that an agreement may be edging closer in peace talks held in Istanbul on Tuesday.

Ukrainian President Volodymyr Zelensky has conceded on the issue of neutrality, saying it was clear Ukraine would never be allowed to join NATO.

His Russian counterpart Vladimir Putin agreed to scale back hostilities in the Ukrainian capital Kiev.

But Kremlin spokesman Dmitry Peskov said that the issue of Crimea, which Russia annexed in 2014, was not up for discussion with Moscow considering the matter settled.

Germany is increasing drilling to make up for loss of gas and oil that had been coming from Russia.

https://www.peoplesworld.org/article/medvedev-new-financial-order-emerges-as-sanctions-fail-to-affect-russia/

Cc; Lalasticlacla, Mynd44

Has anyone seeing Boris Johnson talk tough or threaten Putin with more sanctions since Putin defied them?
The last time he talked, I recall him saying "we will crush the economy of Russia". Meanwhile so far the Ruble has recouped 100% of what it lost when the war started.
Most of all these nations who were rattling and intimidating putin with their sanctions have suddenly gone quite including Biden
Infact the last time he talked, I'm not sure he threatened putin with more sanctions, rather he was calling for his overthrower. Be like the sanctions done finish, or are they saving sanctions ammunition?
Im sure these guys are shocked that Russia survived the greatest and most brutal consecutive sanctions in the last few decades now. They thought russia would become like North Korea. But the funny thing is, Russia while being hit with these sanctions, is still able to keep funding war in Ukraine, which is a Full Fledged convertional warfare against a country that is getting high tech hardwares and munitions from the west everyday.
I fear who no fear Russians oo. Very resilient people

Putin and these Western leaders no be mate.

The evidence is all there.

Next incoming president after Putin..

This guy is even more ruthless than Putin

Medvedev no get one single church mind..

If it were him today, Ukraine for don chop am wella!

Good

MangekyoAlt:
Has anyone seeing Boris Johnson talk tough or threaten Putin with more sanctions since Putin defied them?
The last time he talked, I recall him saying "we will crush the economy of Russia". Meanwhile so far the Ruble has recouped 100% of what it lost when the war started.
Most of all these nations who were rattling and intimidating putin with their sanctions have suddenly gone quite including Biden
Infact the last time he talked, I'm not sure he threatened putin with more sanctions, rather he was calling for his overthrower. Be like the sanctions done finish, or are they saving sanctions ammunition?
Im sure these guys are shocked that Russia survived the greatest and most brutal consecutive sanctions in the last few decades now. They thought russia would become like North Korea. But the funny thing is, Russia while being hit with these sanctions, is still able to keep funding war in Ukraine, which is a Full Fledged convertional warfare against a country that is getting high tech hardwares and munitions from the west everyday.
I fear who no fear Russians oo. Very resilient people

The effects of the sanctions can't be fealt immediately.

paafin:
Next incoming president after Putin..

This guy is even more ruthless than Putin

Medvedev no get one single church mind..

If it were him today, Ukraine for don chop am wella!

Who told you he is more ruthless than Putin?

He was once the president, and he was once the prime minister. He is not as effective as Putin. And there is nothing brutal about him.

Uprightness100:
The Physical Collaspe of Nomerica may be faster than we say.

I have said Repeatedly that Biden/Harris Presidency was specifically appointed for that

The US Dollar is being crippled on all Fronts.
If the Saudis fufill their threats with th Petro dollars and this Russian rupee deal comes to fruition, then u can as well say bye bye to Nomerica's financial hold.

The World is being is being rolled up. We are living in the Book of revelation.
The End is at Hand! Repent and Believe the Gospel of JESUS Christ. There is no more time .

shey u dey whine me ni.... i still bought dollar ₦584 today, its tending towards ₦600. Leave yankee alone, talk about failing ₦. a big loaf of bread is now ₦700, due to shortage of flour/wheat and increase in cost of production it may end up at ₦1000 per loaf. Channel this energy to reawaken Nigerian youths to vote rightly.

The Russian Ruble has exploded in value and recovered all of its losses. The IMF says Russian sanctions are only hurting the dollar dominance.

Bishopmagic still jonzing himself with russia hype... lol

joetem:


shey u dey whine me ni.... i still bought dollar ₦584 today, its tending towards ₦600. Leave yankee alone, talk about failing ₦. a big loaf of bread is now ₦700, due to shortage of flour/wheat and increase in cost of production it may end up at ₦1000 per loaf. Channel this energy to reawaken Nigerian youths to vote rightly.

Inflation is about to bite harder.

I'm also surprised that rubble is regaining its losses.Dollar may fail but not in any time soon.

VictorUSA:
I'm also surprised that rubble is regaining its losses.Dollar may fail but not in any time soon.

You can only buy/long your shares in Russia central bank you cannot sell/short that's why the rubble is regaining. If they open their stock market, it will determine the real direction of the rubble.

Most of the news sites parading this rubble strength now are Rt, Sputnik and other blogging news site from Nigeria, India and other countries that have issues with the West.

The only good thing about current happenings now is that USA will never consider invading Iran under whatever pretense

VictorUSA:
I'm also surprised that rubble is regaining its losses.Dollar may fail but not in any time soon.

Ask them to show you the black market equivalent of roubles, they are just lying to themselves, it's not today we started hearing end of dollars dominance, if it's easy let them do it

TabletMan:
You can only buy/long your shares in Russia central bank you cannot sell/short that's why the rubble is regaining. If they open their stock market, it will determine the real direction of the rubble.

Most of the news sites parading this rubble strength now are Rt, Sputnik and other blogging news site from Nigeria, India and other countries that have issues with the West.

The only good thing about current happenings now is that USA will never consider invading Iran under whatever pretense

Exactly they are not telling people the true story, inflation in Russia keeps spiking despite their so called rebound

https://www.youtube.com/watch?v=SyUMF1cPjeM

The ruble has regained nearly all its losses since Russia's attack on Ukraine, despite sanctions

Parachoko:
The effects of the sanctions can't be fealt immediately.

seems the sanction made Russia stronger as it's currency is on a steady recovery..
the west should be more concerned about the dominance of it dollar, pounds and euros that has exploited the world.

sanpipita:


Ask them to show you the black market equivalent of roubles, they are just lying to themselves, it's not today we started hearing end of dollars dominance, if it's easy let them do it

End of dollar dominance have been raging for years,and the other alternitives are the yuan, criptocurrency,gold and others.But investors are not used to those alternitives.Practically, it would be difficult to dethrone dollar.

gambojimeta:

Inflation is about to bite harder.

All these are happening and people are focusing on oyinbo fight, when are we going to stop these mumu things we do

Today news
Sanctions imposed against Russia do not work, as evidenced by the strengthening of the ruble - Prime Minister of Poland

VictorUSA:
End of dollar dominance have been raging for years,and the other alternitives are the yuan, criptocurrency,gold and others.But investors are not used to those alternitives.Practically, it would be difficult to dethrone dollar.

Petrol-Dollar deal Gulf nations agreed to in the 50s made Dollar strong.
If the Saudi-China deal goes well and mostly oil producers join the game.

no to war

Russia’s ruble rebound raises questions of sanctions’ impact

WASHINGTON (AP) — The ruble is no longer rubble.

The Russian ruble by Wednesday had bounced back from the fall it took after the U.S. and European allies moved to bury the Russian economy under thousands of new sanctions over its invasion of Ukraine. Russian President Vladimir Putin has resorted to extreme financial measures to blunt the West’s penalties and inflate his currency.

While the West has imposed unprecedented levels of sanctions against the Russian economy, Russia’s Central Bank has jacked up interest rates to 20% and the Kremlin has imposed strict capital controls on those wishing to exchange their rubles for dollars or euros.

It’s a monetary defense Putin may not be able to sustain as long-term sanctions weigh down the Russian economy. But the ruble’s recovery could be a sign that the sanctions in their current form are not working as powerfully as Ukraine’s allies counted on when it comes to pressuring Putin to pull his troops from Ukraine. It also could be a sign that Russia’s efforts to artificially prop up its currency are working by leveraging its oil and gas sector.

The ruble was trading at roughly 85 to the U.S. dollar, roughly where it was before Russia started its invasion a month ago. The ruble had fallen as low as roughly 150 to the dollar on March 7, when news emerged that the Biden administration would ban U.S. imports of Russian oil and gas. Speaking to Norway’s parliament on Wednesday, Ukraine’s president urged Western allies to inflict still greater financial pain on Russia.

“The only means of urging Russia to look for peace are sanctions,” Volodymyr Zelenskyy said in a video message from his besieged country. He added: “The stronger the sanctions packages are going to be, the faster we’ll bring back peace.” Increasingly, European nations’ purchases of Russian oil and natural gas are coming under scrutiny as a loophole and lifeline for the Russian economy.

“For Russia, everything is about their energy revenues. It’s half their federal budget. It’s the thing that props up Putin’s regime and the war,” said Tania Babina, an economist at Columbia University who was born in Ukraine. Babina is currently working with a group of 200 Ukrainian economists to more accurately document how effective the West’s sanctions are in stymying Putin’s war-making capabilities.

The ruble has also risen amid reports that the Kremlin has been more open to cease-fire talks with Ukraine. U.S. and Western officials have expressed skepticism about Russia’s announcement that it would dial back operations. President Joe Biden promoted the success of the sanctions — some of the toughest ever imposed on a nation — while he was in Poland last week. “The ruble almost is immediately reduced to rubble,” Biden said.

Sanctions on Russian financial institutions and companies, on trade and on Putin’s power brokers were crushing the country’s economic growth and prompting hundreds of international companies to stop doing business there, Biden noted.Russian efforts to counter those sanctions by propping up the ruble can only go so far.

Russia’s Central Bank cannot keep raising interest rates because doing so will eventually choke off credit to businesses and borrowers.
At some point, individuals and businesses will develop ways to go around Russia’s capital controls by moving money in smaller amounts. As the penalties depress the Russian economy, economists say that will eventually weigh down the ruble. Without these efforts, Russia’s currency would almost certainly be weaker.

But Russia’s oil and gas exports have continued to Europe as well as to China and India. Those exports have acted as an economic floor for the Russian economy, which is dominated by the energy sector. In the European Union, a dependence on Russian gas for electricity and heating has made it significantly more difficult to turn off the spigot, which the Biden administration did when it banned the relatively small amount of petroleum that the U.S. imports from Russia.

“The U.S. has already banned imports of Russian oil and natural gas, and the United Kingdom will phase them out by the end of this year. However, these decisions will not have a meaningful impact unless and until the EU follows suit,” wrote Benjamin Hilgenstock and Elina Ribakova, economists with the Institute of International Finance, in a report released Wednesday.

Hilgenstock and Ribakova estimate that if the EU, Britain and the U.S. were to ban Russian oil and gas, the Russian economy could contract more than 20% this year. That’s compared with projections for up to a 15% contraction, as sanctions stand now. Knowing this, Putin has greatly leveraged Europe’s dependence on its energy exports to its advantage. Putin has called for Russia’s Central Bank to force foreign gas importers to purchase rubles and use them to pay state-owned gas supplier Gazprom.

It’s unclear whether Putin can make good on his threat. The White House and economists have argued that the impact of sanctions takes time, weeks or months for full effect as industries shut down due to a lack of materials or capital or both. But the administration’s critics say the ruble’s recovery shows the White House needs to do more.

“The ruble’s rebound would seem to indicate that U.S. sanctions haven’t effectively crippled Russia’s economy, which is the price Putin should have to pay for his war,” said Sen. Pat Toomey, R-Pa. “To give Ukraine a fighting chance, the U.S. must sever Putin’s revenue stream by cutting off Russian oil and gas sales globally,” Toomey said in an email to The Associated Press.

Sen. Sherrod Brown, chairman of the Senate Banking, Housing and Urban Affairs Committee, said Wednesday that lawmakers are considering ways to expand the sanctions Biden recently imposed on members of the Russian parliament “and probably widen that to other political players.” Brown, D-Ohio, said lawmakers also are weighing more penalties against banks.

Western leaders, under Biden’s encouragement, embraced sanctions as their toughest weapon to try to compel Russia to reverse its invasion of Ukraine, which is not a member of NATO and not protected under that bloc’s mutual defense policy. Some of the allies now acknowledge their governments may need to redouble financial punishment against Russia.

British Prime Minister Boris Johnson said Wednesday that the Group of Seven major industrial nations should “intensify sanctions with a rolling program until every single one of (Putin’s) troops is out of Ukraine.” But that’s a tougher ask for other European countries such as Germany, which depend on Russia for vital natural gas and oil. The EU overall gets 10% of its oil from Russia and more than one-third of its natural gas. Many of those countries have pledged to wean themselves off that dependence — but not immediately.

If European nations did move more quickly off Russian petroleum, wrote analyst Charles Lichfield of the Atlantic Council, “a more comprehensive embargo from Europe would threaten Russia’s current account surplus — suddenly making it more difficult to pay public-sector salaries and wage war.” He noted that “such an outcome may be beyond the reach of Western consensus.”

Sweet reported from New York. AP Congressional Correspondent Lisa Mascaro contributed to this report.

The sanctions are still warming up

seunny4lif:

Petrol-Dollar deal Gulf nations agreed to in the 50s made Dollar strong.
If the Saudi-China deal goes well and mostly oil producers join the game.

In mid 1974 durin the Nixon-Administration, America and Saudi struck a deal of the petrodollar in return the U.S guaranteed its security.The talks to switch sales of oil from dollar to another currency have surged for over half a decade now but it didn't go into fruition.About 80% of oil world wide is sold in dollars.It'll severely hit Saudi's economy when they switched.They can't even do it now.

VictorUSA:
In mid 1974 durin the Nixon-Administration, America and Saudi struck a deal of the petrodollar in return the U.S guaranteed its security.The talks to switch sales of oil from dollar to another currency have surged for over half a decade now but it didn't go into fruition.About 80% of oil world wide is sold in dollars.It'll severely hit Saudi's economy when they switched.They can't even do it now.

Who knows what will happen in 20 years time, if many countries continue to dump the dollars.

seunny4lif:

Who knows what will happen in 20 years time, if many countries continue to dump the dollars.

Yeh! It's not impossible but I'm only saying it's not easy to dump dollar, it has severe consequences.

VictorUSA:
Yeh! It's not impossible but I'm only saying it's not easy to dump dollar, it has severe consequences.

Says who?
Remember when it’s was Rome empire and UK empire.

seunny4lif:

Says who?
Remember when it’s was Rome empire and UK empire.

I don't know how relevant is the Roman Empire and British Empire relevant in this conversation or are you talking about when their currencies ceased to be reserve currencies? The U.K's Pound Sterling ceased to be reserve currency in early 20th Century when they went banktrut after fighting world 1 and 2.