Report Claims Russia and Iran Plan to Establish a Global Gas Cartel – Russian Ministry of Economic Development economists stated last week that the GDP decline for the country would be far lesser than initially predicted.
Vladimir Putin, the president of Russia, also criticized the US once more and emphasized that the US needs “conflicts to retain their hegemony.” The U.S. dollar has been strong during the conflict between Russia and Ukraine, and the Russian ruble has been one of the best-performing fiat currencies globally.
The transcontinental country, located in Eastern Europe, does not appear to be being impacted by the sanctions, but rather the rest of Europe. For instance, in a report released on Tuesday by Forbes, author Kenneth Rapoza detailed how “Russia sanctions had impacted Europe’s markets and energy security.”
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The European economy has been the most negatively impacted by the sanctions, according to Rapoza. Reports indicate that Russian oil continues to fill European petrol stations at inflated prices even though Europe is experiencing the worst inflation in years.
Putin stated at the end of June that the nations were considering a new international reserve currency based on a basket of currencies. Two weeks after Putin’s remarks, the National Iranian Oil Company (NIOC) and Russia’s Gazprom signed a memorandum of understanding (MoU).
Putin headed to Tehran on the same day to hold talks with the Turkish and Iranian leaders. The oilprice.com financial journalist Simon Watkins, the agreement signifies the beginning of Russia and Iran laying the groundwork for a global gas cartel. The largest supplier of liquefied natural gas in the world, Qatar, is mentioned in the editorial as a potential partner.
“With a foundation in the current Gulf Exporting Countries Forum (GECF), this Gas OPEC would allow for the coordination of an extraordinary proportion of the world’s gas reserves and control over gas prices in the coming years,” Watkins stated on August 23.
“Occupying the number one and number two positions in the world’s largest gas reserves table, respectively – Russia with just under 48 trillion cubic meters (tcm) and Iran with nearly 34 tcm – the two countries are in an ideal position to do this,” the oilprice.com author further added.
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Russia’s efforts to transport gold are followed by reports that the BRICS nations are currently considering a new international currency and the recent agreement between Gazprom and NIOC. Russia intends to establish a precious metals exchange similar to the London Bullion Market Association, according to capital.com.
Capital.com contributor Indrabati Lahiri says Russia’s metals exchange idea is provisionally called the Moscow World Standard (MWS). However, Russia’s top gold producer Polyus has issued bonds in Chinese yuan and the firm has done so twice in 30 days. Reuters noted that since the Ukraine-Russia war started in February, demand for the yuan has increased.