(BrightPress.org) – On February 24, Russian President Vladimir Putin ordered the Russian military to invade Ukraine. Since then, the United States, Europe, and others have united against Russia’s war, implementing crushing sanctions and freezing hundreds of billions of dollars in assets. The ruble’s value collapsed as citizens quickly tried to convert their rubles into more stable Western currencies.
While Russia’s central bank increased interest rates to 20% to entice people to hold the ruble, Putin may have found another way around their economic challenges. On Wednesday, March 23, Putin attempted to strengthen the ruble by forcing countries opposed to his military actions in Ukraine to pay for oil and gas in the Russian currency. Several European countries are heavily dependent on Russian energy to fuel their economies, a move they now realize was a mistake.
Putin says "unfriendly" countries must now pay for Russian natural gas in rubles https://t.co/kyQm3e3bqk pic.twitter.com/EGeTxj3XfF
— The Hill (@thehill) March 23, 2022
Economists say every time a Western country purchases oil or natural gas from Russia, Putin will require them to do so in rubles. In effect, countries trying to stop his aggression against Ukraine will actually prop up Russia’s currency, aiding Putin in stabilizing the Russian economy.
It appears Putin has the leg up on his Western adversaries this time, but will Putin’s strategy deter buyers and worsen global economic issues?
Stay tuned.
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