I said the world is beginning to move back towards that.
But in the meantime, it's why the sanctions and removal from the SWIFT system didn't work to break Russia.
Those things only work if you're bought into the Western monetary system and hold US currency and debt. Prior to February 2022, Russia had paid off all its US dollar-denominated debt. When they started sanctioning Russia, Russia began trading in local currencies and asking for rubles in return.
They haven't had to. Countries like India, which has straddled the line between East and West, were buying Russian oil at "friendly nation" prices, and selling it to Europe.
When Western leaders looked into putting a price cap on Russian oil, look at how many countries (including Japan) decided to ignore them, after Russia said it wouldn't sell to countries who enforced the price caps. Because the only way to enforce price controls like that is for countries to abide by them. Many didn't because they wanted the oil more.
I said the world is beginning to move back towards that.
But in the meantime, it's why the sanctions and removal from the SWIFT system didn't work to break Russia.
Those things only work if you're bought into the Western monetary system and hold US currency and debt. Prior to February 2022, Russia had paid off all its US dollar-denominated debt. When they started sanctioning Russia, Russia began trading in local currencies and asking for rubles in return.
They haven't had to. Countries like India, which has straddled the line between East and West, were buying Russian oil at "friendly nation" prices, and selling it to Europe.
When Western leaders looked into putting a price cap on Russian oil, look at how many countries (including Japan) decided to ignore them, after Russia said it wouldn't sell to countries who enforced the price caps. Because the only way to enforce price controls like that is for countries to abide by them. Many didn't because they wanted the oil more.