Russia moves closer to requiring payment of goods in gold

Security Council Russia said Moscow is working to link the price of the ruble to gold and other commodities.

In an interview with Rossiyskaya Gazeta on April 26, Security Council Secretary Nikolay Patrushev said that Russia is working on a project to create a two-round monetary and financial system in the country.

Project related to fixing gold price in rubles, sales in rubles, and thus the equivalent of asking for payment of purchases in gold. Thanks to this, the exchange rate of the ruble will correspond to the real purchasing power, according to Mr. Patrushev.

In order to ensure the sovereignty of any national financial system, it is necessary that the means of payment have intrinsic value and price stability, and at the same time, the secretary of the Russian Security Council stressed. not bound to USD.

Another important condition for Russia’s economic security, Patrushev added, is the restructuring of the country’s economy based on modern technologies.

“We are not against the market economy, but the West only allows other countries to become its partners when it is in its favor,” said Patrushev, noting that Russia’s development needs to be developed. based on the country’s internal potential.

Earlier in April, the Central Bank of Russia announced a fixed price for the purchase of gold in rubles, valuing 5,000 rubles ($66.84) per gram of gold.

Russia is the world’s largest exporter of natural gas and oil export third largest in the world. Currently, President Putin is asking “unfriendly” foreign buyers to pay for natural gas in rubles. This immediately links the price of gas to the ruble and the price of gold.

The same can be done with Russian oil. If Russia starts demanding oil payments in rubles, there will be an indirect peg in gold. After that, Russia could start accepting gold directly as payment for oil exports. In fact, this can be applied to any commodity, not just oil and gas.

By bridging, that is, fixing the ruble to gold and then demanding payment for goods in rubles, the Central Bank of Russia and the Kremlin are fundamentally changing the entire operating assumptions of the trading system. global trade, accelerating change in the global monetary system. Buyers looking for physical gold to pay for real goods could certainly blow up the LBMA and COMEX gold markets.

Linking the ruble to gold through a fixed price set by the Central Bank of Russia stabilizes and strengthens the ruble. Claim gas payment in ruble (and possibly oil and other commodities) will once again act as a stabilizer and support.

The secretary of the Russian Security Council also emphasized that the US is trying to solve its problems at the expense of the rest of the world, thus creating a “man-made global crisis”. “. And America’s European allies will be the first to suffer such actions, Patrushev said.

While the White House is discussing the possibility Russia may defaultthen the situation has reached the point that “it’s time for them to declare default,” said Patrushev, pointing out that the US foreign debt has exceeded 30 trillion dollars.