Sanctions, You Say? Two Can Play That Game!

NEW – March 13, 2022

Do you know what makes me laugh about Europeans?

It is their naive belief that they are omnipotent. These pompous turkeys, and in fact, political impotents, think that they can impose any tough, unfair and illegal sanctions against Russia, and Putin will not be able to do anything to them in response.

They did not understand that Russia has already turned on the combat bear mode, and we will strike them in the most painful places, and perhaps even with our feet. But more on that later. Let’s return, as is said, to our sheep, in this case already in the literal sense of the word.

Here the example of Germany and Olaf Scholz is indicative, who said that Europe is withdrawing energy supplies from Russia from sanctions.

But do you remember how many different sanctions Europe has already imposed on Russia?

And now, when they saw that spot gas prices were soaring today to a peak of $3,898 per thousand cubic meters and experienced a real shock, they decided to do their favourite thing again — to pick out the raisins, that is, to leave only those sanctions that in their opinion will cause damage to our country, and cancel those that will cause serious damage damage to their economy.

And this is where their naive belief that they are omnipotent is manifested, and that Russia will not respond. They proceed from the fact that Putin will happily wipe the sweat from his forehead and say: “Phew, it’s gone!”, and after that he will continue to supply them with energy carriers, as if nothing had happened.

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They did not understand that Russia has already crossed the rubicon and there will be no way back. There will be no more obsequiousness and humility, there will be no more retreat and respect for them.

Deputy Prime Minister of the Russian Federation Novak made a statement yesterday. He said the following:

“Europe consumes about 500 billion cubic meters of gas per year. 40% of this consumption is provided by Russia.

For many decades, despite everything, Russia has always been a reliable partner.

At the same time, we understand that due to unfounded accusations against Russia regarding the energy crisis in Europe and the introduction of a ban on Nord Stream 2, we have every right to make a ‘mirror’ decision and impose an embargo on gas pumping through the Nord Stream 1 gas pipeline, which is currently loaded at the maximum level of 100%.

But we are not making this decision yet.”

The key words in his statement are “yet”.

You probably know that the European Union has banned the sale, supply, transfer and export of euro banknotes to Russia.

Well, great!

They untie our hands themselves. Vladimir Putin has already decided that all Russian companies can pay debts to Western creditors in ruble equivalent to accounts specially created for this purpose in Russian banks.

Many of our citizens perceived this as a victory, but there is a very unpleasant point here. Russian companies will be required to pay these debts at the dollar exchange rate on the first day of the month.

In reality, it means this.

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For example, a certain Russian company had to make a payment in March – $100,000, and for this it would have been necessary, if the exchange rate had remained at the level of last month ($1 = 75 rubles), to change 7,500,000 rubles to MICEX and make a payment.

But taking into account the fact that the dollar exchange rate on March 1 was 93 rubles per dollar, now the company will need to pay 9,300,000 rubles, and in a month, despite the fact that currently its rate is almost 106 rubles, the next payment may amount to 10,600,000 rubles and much more.

How can Russian companies compensate for these losses?

And here there is an elegant and interesting move.

In response to such tough European sanctions, we can impose our own sanctions on almost all European countries with the exception of Serbia and Hungary and unilaterally terminate long-term gas supply contracts to EU countries, reminding them that they have always advocated short-term contracts and insisted on trading gas at spot prices.

We can announce to them: “Rejoice, we have heard you and now we will supply you with gas exclusively at spot market prices and exclusively for rubles!”. Yes, however, we can also supply all other vital goods for the EU there exclusively for rubles.

They banned the supply of euros to Russia in order to bleed out our financial system and drive the ruble into a tailspin, and such an “answer to Chamberlain” literally suggests itself.

Since Europe cannot do without our energy resources and much more – the same fertilisers, metals, sunflower oil and other things, we will create demand for our ruble, and at the same time compensate Russian companies for the damage caused by increased payments on loans taken in the West, not at the expense of the National Welfare Fund and not by printing unsecured money, but by receiving huge revenues from the sale of gas for rubles on the spot market.

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In addition, the increasing demand for the ruble will not only stabilise, but also reduce the dollar exchange rate on the MICEX, which will contribute to the stabilisation of the economic situation in the country.

And the same increasing demand for rubles will force Western currency exchanges to start trading on the ruble-dollar and ruble-euro pairs.

We have nothing to lose now, we need to get rid of the dollar and the euro and increase the attractiveness of the ruble in all possible ways.

Therefore, we are waiting for Putin to continue the banquet and unveil new, very different and painful sanctions that Russia will dump on its partners until they really get sick. They wanted to arrange a local crisis and even a famine for us in the country, so we will arrange a global one for them!

Hand of the Kremlin

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