Ruble is not a scam the default in the currency doesn't male it a scam,since we know the reason behind it. The ongoing war and sanction of Russia from the western world has led to the default in Ruble. With all the sanctions and ongoing war,Russia economy is still far better than some European countries because Russia has abundant of gas. I don't see this default as some drastic,since almost every country currency do default. No currency used by a government is scam. Russia needs to stop the ongoing war and embrace peace for the betterment of their economy.
Yes, there is a lot of gas in Russia, but no one wants to buy it anymore because of the same economic blockade. Europe has almost completely abandoned this Russian resource and buys from others. It is already known that 50% of income from this source does not go to the treasury.
For the default. So he has been several times in recent years. The country could not fulfill its obligations to investors. Somehow they got out, but these are prerequisites for something terrible. It seems to me that there is still more to come.
Russia is supported by its allies to overcome its economic and financial crisis imposed by Western sanctions. These allies are essentially the BRICS alliance, which includes major economies capable of absorbing Russian exports. Two days ago, it was announced that Indian imports from Russia reached their highest levels in their history, and Chinese imports of Russian energy products also reached record levels. We do not fail to mention that these surpluses of imports are acquired at very low prices compared to prices in the global market, but it seems that this does not bother Russia due to its huge production and its ability to meet its needs at low prices. In addition to Russia controlling a large part of the Ukrainian economy and targeting its vital facilities to increase demand and raise the price in the global market, and I mean especially grain.
From the outside, it looks exactly as you say. But if you look behind the scenes.
To begin with, I agree with you - the BRICS countries have indeed taken over a significant part of Russia's exports. And now let's clarify what and how?
To be more precise, let's start with what was Russia's main export before it unleashed the terrorist war in Ukraine ?
More than 50% of russia's exports were:
- oil+gas
- military industrial products
- metals
Any comments on these export items ? I am sure - no, because everything is in open sources.
And what of the key export items have the BRICS countries "taken for themselves"?
1. Gas. Off target. The BRICS countries did not pick up the gas exports that the EU has now refused to buy. Russia's backward gas transportation network does not allow it.
2. Oil. Here I agree. India and China have extremely increased their purchase of Russian oil. But this is the funniest story
Oil is bought at huge discounts and paid for with yuan and rupees! But that's half the comedy. The main comedy is that these rupiahs and yuan cannot be converted into a currency that is critically important to russia. It is impossible to turn these pieces of paper into something critically important - both China and India sell only consumer goods for their currency.
3. The military-industrial complex - this is a simple fact. The largest buyer of Russian scrap metal, having seen its "effectiveness" in a real war, and not on advertising brochures, broke virtually ALL contracts with Russia - from joint development to the purchase of finished products.
4. Metals ? Look who are the leaders in the EXPORT of metals ? Who are the EXPORT leaders ?.... Drum roll !!! China and India !
Question - even if they will buy metal from Russia - what price will it be, given their leadership in the industry ?
So on the one hand you are right, but the reality is far from positive
I agree with you that Russia may not fully benefit from the attempts of its BRICS allies to support it during the war, and that it remains limited support. However, I would like to correct a few points you mentioned:
- In addition to the three materials that you mentioned, you forgot the Russian production capacity of grains, which together with the Ukrainian production represent nearly a third of the global production. With grain supplies cut off from Ukraine, imagine Russia's chances of selling wheat at a higher price.
- China imports liquefied gas from Russia by 50 percent of its total imports of liquefied gas and is in the process of preparing a gas pipeline that extends across Siberia. Russian gas supplies have increased significantly since January 2022.
- India cannot provide much support because of its geographical location far from Russia and its ability to provide its gas needs from its Asian neighbors, and oil from the Gulf countries across the Indian Ocean.
- Russian weapons are popular with all countries wishing to get rid of the authority of America and the West over them. Here I mean African countries and other countries that have an international presence, such as North Korea, Eritrea, Iran, and others.
If we eliminate the idea that this aid does not provide sufficient support, can you explain to us how Russia supports its military position by not stopping and continuing the war?
