The Russian president said in his address: - Georgia's military offensive on South Ossetia was a consequence of policies unilaterally followed by the U.S. administration - Russia will push for reforms to global political and economic systems ... - urged a switch to the ruble in payments for gas and oil supplies
- Georgia's military offensive on South Ossetia was a consequence of policies unilaterally followed by the U.S. administration - Russia will push for reforms to global political and economic systems ... - urged a switch to the ruble in payments for gas and oil supplies
will that have an effect on the dollar? ~Government budget deficits are not nearly as dangerous as the deficits we have created in vital and complex natural systems.~ Naomi Klein.
Trade is in US$ and euros, plus for existing long term contracts and for private companies government can not set trade currency guidelines/conditions; but for new deals negotiated on the government level it makes sense to switch to rubles and counterparty's currency.
It will not affect dollar materially, as entire annual Russian exports are only at 350+ bln $ and a small fraction of this amount is going to be affected several years into the future. Moreover, it is being read as an anti-US move, which it is not, just one of the moves towards better convertibility of the ruble.
