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‘Unfriendly states’ to pay Ruble for gas from March 31

Russia’s decision to switch payments to its domestic currency has been made in response to the unprecedented penalties imposed by the US and its allies on the country’s financial system, the report said…reports Asian Lite News

Russian President Vladimir Putin has authorised the government, the central bank, and Gazprombank to take the necessary steps to switch all payments for Russian natural gas from “unfriendly states” to rubles starting March 31.

The measure targets “member states of the EU and other countries that have introduced restrictions against citizens of the Russian Federation and Russian legal entities”, the mandate published on the Kremlin website reads, RT reported.

The decision, first announced last week, came as Russia’s oil trade has been left in disarray as importers put orders on hold due to the latest sanctions introduced against Moscow over its military operation in Ukraine.

The conflict in Ukraine and the anti-Russia sanctions that followed have raised concerns of a global economic crisis. Skyrocketing commodity prices are sending the costs of consumer goods, energy, and food ever higher, giving rise to fears of a possible recession in many countries and even hunger in some parts of the world.

Russia’s decision to switch payments to its domestic currency has been made in response to the unprecedented penalties imposed by the US and its allies on the country’s financial system, the report said.

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Business Europe

Ruble crashes as Russia launches attacks on Ukraine

The Russian central bank added that the country’s financial institutions have a clear plan of action for any scenario…reports Asian Lite News

The Central Bank of Russia suspended trading in the foreign exchange markets on Thursday. The ruble plunged to a record low after President Vladimir Putin ordered his country’s military to conduct a special operation in the Donbass region, RT reported.

The Russian currency dropped 6 per cent to 86 rubles per US dollar early Thursday – the lowest level on record.

Both Moscow’s and St Petersburg’s stock exchanges suspended all trade in rubles after quotes reached the trading band limits set by the exchange itself.

“To stabilize the situation on the financial market, the Bank of Russia decided to start interventions in the foreign exchange market, expand the Lombard list, and conduct operations today to provide additional liquidity to the banking sector,” the regulator said in a press release.

According to the announcement, the regulator will ensure the maintenance of financial stability and the business continuity of financial institutions by using all necessary tools.

The Russian central bank added that the country’s financial institutions have a clear plan of action for any scenario.

Russia is currently holding vast gold and foreign-exchange reserves worth over $600 billion that could be used to prop up the rapidly depreciating national currency if required, the report said.

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