Russia increasingly understands its international leverage with oil, gas, and gold

Section:

Lawmakers Call on Oil and Gas Producers to Ditch 'Dirty, Bloody Dollar'

From Russia Today, Moscow
Thursday, April 3, 2014

http://rt.com/politics/russian-dollar-abandon-parliament-085/

A group of lower house members of Parliament are urging Russian oil and gas producers and traders to stop using the US dollar. They say this means sharing profits with the United States and making Russia vulnerable to Western sanctions.

"The dollar is evil. It is a dirty green paper stained with blood of hundreds of thousands of civilian citizens of Japan, Serbia, Afghanistan, Iraq, Syria, Libya, Korea, and Vietnam," one of the authors of the motion, Mikhail Degtyaryov of the conservative nationalist party LDPR, said in an interview with Izvestia daily.

Degtyaryov also said that Russia already had a bilateral agreement with China allowing payment in national currencies and this proved that such step was possible.

... Dispatch continues below ...



ADVERTISEMENT

Silver mining stock report for 2014 comes with 1-ounce silver round

Future Money Trends is offering a special 18-page silver mining stock report about how to profit with the monetary and industrial metal in 2014, and it comes with a free 1-ounce silver round. Proceeds from the report's sales are shared with the Gold Anti-Trust Action Committee to support its efforts to expose manipulation in the monetary metals markets. To learn about this report, please visit:

http://fmturl.com/gata/



"Our national industrial giants will not suffer any losses if they choose to make contracts in rubles or other alternative currencies," the MP said. "Russia will benefit from that. We should act paradoxically when we deal with the West. We will sell rubles to consumers of our oil and gas, and later we will exchange rubles for gold. If they don’t like this, let them not do this and freeze to death. Before they adjust, and this will take them three of four years, we will collect tremendous quantities of gold. Russian companies will at last become nationally oriented and stop crediting the economy of the US that is openly hostile to Russia.”

Degtyaryov is known for drafting an official bill banning the US dollar in Russia. He told reporters that this document has been recalled from parliament and amended with a ban on the euro and promised to resubmit the new draft to the lower house in the near future.

On Wednesday the head of leading state-owned bank VTB, Andrey Kostin, also urged Russia to start transitioning to ruble payments with all its trading partners, including China and Western Europe. Kostin also said the switch should begin as soon as possible and that exporting companies should lead the way in adopting the change. According to the banker the plan could help to lower the country's dependency on "the whims of US and EU authorities."

However, industry experts have warned against hasty moves, saying that sometimes the transition to a different currency was simply impossible.

The head of the Trade and Industry Chamber's committee for financial markets, Yakov Mirkin, said that at present the international practice was to calculate oil and gas prices in US dollars as the international reserve currency. "We cannot swim against the current. This is how the whole thing works. Maybe such a thing will be possible in 10 or 15 years, but not today," Mirkin noted.

The head of the public relations department of the Russian state oil corporation Rosneft, Mikhail Leontyev, said that his company was bound by contract obligations and the fast switch to a different currency was simply impossible.

* * *

Join GATA here:

Porter Stansberry Natural Resources Conference
AT&T Performing Arts Center
Margot and Bill Winspear Opera House
2403 Flora St., Dallas, Texas
Saturday, May 31, 2014

http://stansberrydallas.com/

Committee for Monetary Research and Education
Spring Dinner Meeting
Union League Club, New York City
Thursday, May 22, 2014

http://www.cmre.org/news/spring-meeting-2014/

Canadian Investor Conference 2014
Vancouver Convention Centre West
1055 Canada Place, Vancouver, British Columbia
Sunday and Monday, June 1 and 2, 2014

http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc...

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16



ADVERTISEMENT

Buy metals at GoldMoney and enjoy international storage

GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, ­taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit:

http://www.goldmoney.com/?gmrefcode=gata