Russia strikes back at Western sanctions, says all major exports could soon be in rubles

As Western sanctions continue to cripple the Russian economy, the Kremlin announced on Wednesday that all of Russia’s energy and commodity experts could soon be priced in rubles – further intensifying Moscow’s warning that Western attempts to isolate the world’s 11th largest economy will be met as an economic act of war.

The move forced Germany – Europe’s economic powerhouse – to declare an “early warning” on Wednesday that the country could soon be facing a supply emergency.

Russia exports several hundred billion dollars of natural gas to Europe each year and Russian gas accounted for 55% of Germany’s gas imports in 2021.

When asked about the announcement, Kremlin spokesman Dmitry Peskov said, "This is an idea that should definitely be worked on,” and added that “It may well be worked out.”

Peskov also noted that the U.S. dollar’s role as a global reserve currency was wavering and said that a move to price Russia’s main exports in rubles would be “in our interests and the interests of our partners.”

Europe imports approximately 40% of its gas from Russia and euros currently account for 58% of state-owned Gazprom’s exports – with U.S. dollars accounting for 39% and sterling standing at about 3%, company officials stated.

European leaders have said, however, that Russia’s demands could potentially breach their contractual agreement.

"If you want gas, find rubles," Russian parliament speaker Vyacheslav Volodin said in a post on Telegram.

"Moreover, it would be right - where it is beneficial for our country - to widen the list of export products priced in rubles to include: fertilizer, grain, food oil, oil, coal, metals, timber etc."

Although it remains unclear how Russia would accomplish the proposed change to its export contracts, it appears increasingly clear that it would need backing from Beijing in order to overcome Western opposition. In recent weeks, Chinese officials have signaled that they could be willing to step in to help – strengthening Lavrov’s claims that Russia’s relations with China are at an all-time high.

"China is willing to work with Russia to take China-Russian ties to a higher level in a new era under the guidance of the consensus reached by the heads of state," Chinese Foreign Minister Wang Yi said. read more 

Russia’s former President Dmitry Medvedev has also backed the move and has claimed that Western sanctions have “boomeranged” back and hit the European and North American economies – driving up energy prices and weakening confidence in both the dollar and the euro.

"The world is waking up: confidence in reserve currencies is melting like a morning fog," Medvedev said. "Abandoning the dollar and the euro as the world's main reserves no longer looks like a fantasy."

Medvedev also claimed that "crazy politicians" in the West have sacrificed the interests of their taxpayers on the altar of an unknown victory in Ukraine. "The era of regional currencies is coming,” he added.