Bloomberg reported that during the Shanghai Cooperation Organization summit, Putin explained how Russia and Turkey will bypass the dollar by announcing that part of the cost of Russian gas exports to Turkey will be paid in rubles.
As a result of the growth of the ruble by 11% against the US dollar since the beginning of the year, Bloomberg has named it the world’s best-performing currency.
The Russian ruble has undergone an astonishing recovery, surging to levels not seen in almost two years, after losing over half of its value in March owing to Western sanctions. Sergey Kopylov, a junior partner at consultancy firm BSC and a lead researcher at Plekhanov Russian University of Economics, unravels the mystery of the rising ruble.
Every national financial system's sovereignty requires that its methods of payment have inherent worth and price consistency, and are not dependent to the dollar. With this objective in mind, Russia is now all set to implement the gold standard for ruble.
Russian President Vladimir Putin issued a decree establishing a new payment system for Russian gas by non-friendly countries beginning April 1. Here's Russia’s gas-for-rubles payment schedule explained.
Saddam, Gaddafi, Iran, Venezuela – they all tried but couldn’t do it. But Russia is on a different level altogether. The beauty of the game-changing, gas-for-rubles, geoeconomic jujitsu applied by Moscow is its stark simplicity.
Even though it's still too premature to predict how the US dollar will fare during this economic shift, it is almost certain that it will emerge weaker and less dominant than before. This comes as a result of the gold backed ruble which is the new paradigm shift for the global economy.
"Moscow just wouldn't come running to India's defense if China decided to invade" was the ominous comment made towards India. In a bizarre series of events, the US has threatened India with consequences for propping up ruble trade and undermining the dollar based financial system.
After opposition from Serbia and Hungary Russia has stated that Bulgaria will pay for the gas in rubles whether the west likes it or not.