Wednesday, July 06, 2022

From Jenna Orkin

According to this complex scheme, European buyers of Russian natural gas would have to open accounts from Gazprombank and pay for their imports with euros, which are then internally exchanged for rubles so that the transaction can be finally settled on their behalf. Therefore, the profits made are ultimately being denominated in rubles and, in parallel, Russia can also stockpile foreign hard currencies on Russian soil (instead of being held overseas, where they are within reach of ‘unfriendly’ forces). In other words, Gazprombank is operating as a de facto substitute for Russia’s Central Bank as monetary and financial intermediary.

 

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