Russia Switches to the Euro!!!

Russia is to start pricing its huge oil and gas exports in euros instead of dollars as part of a stragetic shift to forge closer ties with the European Union.

The Russian central bank has been amassing euros since early 2002, increasing the euro share of its $65 billion (�40 billion) foreign reserves from 10pc to more than 25pc, according to the finance ministry.

The move has set off a chain reaction in the private sector, leading to a fourfold increase in euro deposits in Russian banks this year and sending Russian citizens scrambling to change their stashes of greenbacks into euro notes.

Russian Euro Switch

I can't believe they did it. This is could be the beginning of the fall. How will the market react?

As the largest consumer of these goods in the world, the US will not take kindly to this, and will react with trade embargoes, like what they try to do when we europeans get too big for them to handle (I am of course thinking of the steel war).

It does look like a bad sign for the US, but I guess only time will tell...

Wonders if this is the final country to join the EU as predicted in the bible....

I love your avatar btw....

i kinda know it will be...
but probably not for a very long time....

Go, Igor Go!



Sooner than later your beloved USA will sunk to 3rd world level as the whole OPEC also will switch to Euros.

European Markets seems to be doing well..

www.europeaninvestor.com...

[Edited on 10-10-2003 by kukla]

This Oil for Euros thing just shows US that there is no love to be lost between US and the rest of the world after illegal invasion of Iraq..



World has had enough!



Also Russia is fed up with US / NATO invasion of former Soviet states..

The newest AirForces montly tells that NATO is opening two airbases is Kazakstan..



US is invading Russian soil and Russia is fighting back..

By non lethal means for now..

To be honest I'm scared. Not only do I not know what will happen to the economy, I don't know what kind of desperate act the government of the U.S. may try to pull as a reaction to this.

good points!

it is definately a two fingered salute to the US, and as the Bush regime is embroiled in corperate affairs, their retalliation will be a harsh one. I feel that we may have a trade war on our hands before long.

plus bush is a nutter, but hey, just a personal view

I can't say I'm quite as gleeful about this as Fulcrum.Whatever effects the US economy always hits Europes.

I think Russia will join the European Union in the future.And why not??
The combination of European technology and money combined with Russian resources makes it an ideal marriage.
I had suspected as much when Shroeder,Chirac,and Putin met soon after the war in Iraq.
The national interests of these countries had been indirectly threatened by the precedent of the "Unreasonable Veto".
I would imagine that,even now,there are plans for a Europe/Russian Star Wars program utilising European money and technological expertise with Russian labour and experience in space.

I expect the first move will be to conjoin Europe's and Russia's space agencies.Ever wonder why European Satelites are launched from Russian soil as well as French territories?
What better way to fund the Russian Space program.

That aside,the question of currency.

Any currency investor in the world would recognise that if they had invested their Dollars in Euros early on they would be quids in by now.
This trend does not appear to be abating.

The question is should Russia and OPEC countries not protect their own interests to protect the USA?

Is it the threat of violence that has stayed their hand until now?

I thought Americans welcomed a free economy?

The problem is that the US economy is dire.It is a shadow of a reflection of a mirage.Maintained only by the collusion of the US media and the wishful thinking of the American people.

The Russian have looked at the figures and have drawn their own conclusions.

Threatening retaliation for not propping up a bankrupt economy is that what the future holds?

A new Rome.Spending it's tribute on entertaining it's people.The people blissfully unaware of the measures needed to pay for these excesses?

Someone must pay someday.

This wasn't expected. What happened to that-- "I like George Bush" crap Putin was spewing last week. complete BS.

Bush said: "I hope our "friends" at OPEC wouldn't think of doing something that would hurt our economy." Sounded like a threat to me ???

dangerous times--this is what we get for helping. i've said it before and i'll say it again...america for americans, my friend. that's money we could've saved.

[Edited on 10-10-2003 by Saphronia]

Saphronia,

Your response is like that of a blind woman who having had rainbows described to her all her life finds herself able to see one.

"You didn't tell me about the bloody rain!"she exclaims.

Maybe it's time the UK did join the Euro. (please god forgive me for thinking such evil)

Now russia prices oil in Euro and OPEC looking like they might it looks like America dominance on oil might be coing to an end.

This was to be expected.
Russia is part of the European continent. It is to be expected that it will be absorbed into the EU at some date.
If anything this means that the Cold War is definitely over. Russia will become a part of Europe and whatever the crackpots here say - Europe is the United States strongest ally.

It's still highly unlikely that OPEC will swap the dollar just because the Russians are joining the Euro. The United States economy is still worth more than the whole of Europe's put together. The Russian rouble has ben absolutely worthless since the fall of the Iron Curtain. The Russians are merely joining the capitalist economy of the West.

JB1 and others..

Sorry..

My first reaction to this was one of madman..

I really am just happy that with things like these happening the Europe is comming stronger..

And will one day take its place worlds leading Super Power.. (that is if all [most] of Europe is to unite..)

If that happens we will come supreme.. and US will and economy has no affect on us..

You people forget one important aspect of all this..the US is the largest consumer of petroleum. We now hold control of one of the world's largest oil reserves and sit on top another that we've saved for such a pinch. Whats to happen when we offer OPEC 10 bucks a barrel for oil, take it or sell to someone else?

Sure, it'll hurt but its not going to sink us to 3rd world levels....and just what if it did? If the US was no longer the financial or military power it is now, how would that effect the rest of the world? Positively or negatively? I know most of you would say positively and you might be right but looking at the thousands of variables that make the world go around, there could be literally hundreds of scenarios that play out depending on these many variables...so who could make a statement one way or another. The only constant in the world is change. We will always have it and we will always have to deal with what it brings.

As im in europe i wont be worrying as much as you american guys about this but i for one want a strong america!

The SKY is falling....the SKY is Falling....

no, really... this benchmarking the oil & gas prices to the EU is a natural progression....and nothing to alarm about

Russia is doing major oil & gas distribution increases in 2004 with the EU and FRG (germany)---->>

all.newsfromrussia.com...

other articles include: (VTB) Vneshtorgbank & Dresdner Bank have made possible, a financial strategy, of "Floating" Eurobonds....[making the transition from $US to EU holdings, much easier]

Russia and the CIS, or because of the muslim makeup of the southern tier of the CIS, ,,Russia, herself is asking to join the Organization of Islamic States--->
That, does not suggest Russia seeking EU membership!

There's a lot going on...& Russia, FRG, France, EU...all are seeking what's best for Themselves...

The Euro is worthless.

I mean whats it backed by?

Screwed again Screwed again. I feel sorry for all the russians trading in their US dollars for Euros. If the germans are smart they will keep the US greenbacks in the bank vault.

Originally posted by FULCRUM

Go, Igor Go!

Sooner than later your beloved USA will sunk to 3rd world level as the whole OPEC also will switch to Euros.

It really won't matter, because the USA is about to become the worlds largest supplier of oil!