Markets

Countries Must Use Roubles to Buy Russian Gas

Sure, change the rules, that'll make people like you again...
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Countries Must Use Roubles to Buy Russian Gas

Russian companies, stocks, and currency values have plummeted since Russia's invasion of Ukraine began. One Russian industry has remained mostly unsanctioned: gas exports. This week, the Kremlin announced "unfriendly" nations must pay for gas in rubles. Europe pays up to $880M a day for Russian natural gas.

Impact. The announcement lifted the Russian market and currency. The ruble climbed to 96 from 132.10 to the dollar. Benchmark MOEX index rose 7.6% after a month-long market suspension of most trade. 

Response. Implementation and enforcement of the shift to roubles for "unfriendly" nations are unclear. Japan accounts for 4.1% of crude oil and 7.2% of natural gas exported from Russia. Japanese Finance Minister Shunichi Suzuki says they are looking into the situation with relevant ministries as they "don't quite understand" Russia's intention or plan.

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