On March 31, local time, Russian President Vladimir Putin signed a decree on the settlement of natural gas trade in rubles, and the new regulations came into effect on April 1, local time.

　　Putin previously announced that when Russia supplies natural gas to "unfriendly countries and regions" such as EU members, it will switch to rubles for settlement. It doesn't make any sense. So I decided to implement a series of measures to convert payments in the shortest possible time, starting with the supply of natural gas."

　　The Russian government had previously introduced "supporting" measures, that is, the Russian central bank began to resume buying gold at the end of March, and linked the ruble to gold. The purchase price from March 28 to June 30 was 5,000 rubles (about 60 US dollars per gram). ).

　　The above measures are considered to be Russia's "toughest" response to Western sanctions since the escalation of the situation in Ukraine at the end of February.

After the announcement of the new trading rules, the exchange rate of the ruble against the US dollar achieved a major reversal, regaining all the lost ground since the escalation of the situation in Ukraine.

new trading rules

　　So, for Western buyers of Russian gas, how to settle gas transactions in rubles?

Details of the deal are posted on the Kremlin website.

　　According to information on the Kremlin’s website, from April 1, companies from “unfriendly countries and regions” to Russia should first open a ruble account in a Russian bank, and then pay for Russian gas purchases through this account.

Gazprombank, which was not included in the Western sanctions list this time, and which has historically handled Russian-Western gas transactions, was listed as an authorized bank.

The bank will open separate accounts in foreign currency and rubles for foreign buyers.

Foreign buyers can transfer gas payments to an authorised account in full accordance with the contract terms and in the currency of their choice, which the bank then sells in exchange for rubles, credits the buyer's ruble account, and transfers the funds to the gas supplier.

　　Once Western buyers do not abide by the above rules, they will face the dilemma of "breathing".

This time, the Russian media detailed some situations that may "violate" the new regulations, such as non-payment by foreign buyers or payments to unauthorized bank accounts according to the deadline for payment of gas supply contracts, etc., will be regarded as "violations". ".

　　When the above-mentioned news was just released, major Russian gas buyers in Europe, including Germany and Austria, accused Russia of breaching the contract, because the gas supply contract stated in what currency, the time and form of delivery. etc. details.

This time, the Russian side's transaction rules emphasized that the rules only introduced new settlement procedures so that Russian suppliers can get paid at the current time, and did not change the form of payment currency, "This method will not violate existing contracts, Because buyers will continue to pay in the currency of their choice."

　　At the same time, the Russian side also emphasized that the new regulations did not conflict with the current Western sanctions against Russia.

Compared with Russia's oil exports, Russia's natural gas exports are not subject to Western sanctions. On the other hand, Russia's trading currency, the ruble, and Gazprom, an authorized bank, are not targeted by Western sanctions.

Therefore, the Russian side believes that this form of settlement conforms to the provisions of the contract and also enables the implementation of the decree.

The ruble regains "lost ground"

　　Thanks to Russia's financial "combination punch" against Western sanctions, the ruble has recently made great strides in the exchange rate market.

Since the beginning of this year, the exchange rate of the Russian ruble has experienced a "roller coaster"-like market, especially after the escalation of the situation in Ukraine in February, the ruble fell sharply, and once depreciated to a record low of 154 rubles to 1 US dollar.

　　On March 23, the day Putin announced the "Ruble settlement of natural gas transactions", the exchange rate of the ruble rose by 9%, the largest increase since 2014.

On the day, the dollar-ruble exchange rate was stable at around 1 to 95.

The ruble's performance in the foreign exchange market got another boost when the new trading rules were formally incorporated into the decree on March 31.

As of the press time of the first financial reporter, the exchange rate of the dollar to the ruble was 82.5, while on February 25 this year, the exchange rate of the dollar to the ruble was 83.86.

　　Some foreign media commented that the Russian government's series of financial "combination punches" will not only improve the role of the ruble in international trade, but also do not rule out the ruble becoming one of the world's major currencies, because the ruble is supported by Russia's rich natural resources. .

And Putin has hinted that natural gas is only the first Russian commodity to be sold in rubles.

"I decided to implement a series of measures in the shortest possible time to change the payment method for the supply of natural gas from countries that are not friendly to Russia - yes, let's start with that," he said.

　　On March 30, Russian Duma Chairman Vyacheslav Volodin called for all Russian exports, including fertilizers, grains, and crude oil, to be settled in rubles. Bad situation."

　　According to some analysts, this series of statements also increases the possibility that Russia's export of other commodities will be settled in rubles in the future.

　　In addition, the Russian Ministry of Finance also proposed to buy back dollar-denominated European bonds due on April 4 in rubles.

It is reported that the scale is about 2 billion US dollars, which will become Russia's largest debt payment this year.