Putin: Why Not Price Oil in Euros?

[ConcernedCanuk]

Friday, Oct. 10, 2003. Page 1

Putin: Why Not Price Oil in Euros?

By Catherine Belton
Staff Writer

"President Vladimir Putin said Thursday Russia could switch its trade in oil from dollars to euros, a move that could have far-reaching repercussions for the global balance of power -- potentially hurting the U.S. dollar and economy and providing a massive boost to the euro zone.

"We do not rule out that it is possible. That would be interesting for our European partners," Putin said at a joint news conference with German Chancellor Gerhard Schroeder in the Urals town of Yekaterinburg, where the two leaders conducted two-day talks."

<snip>

A move by Russia, as the world's second largest oil exporter, to trade oil in euros, could provoke a chain reaction among other oil producers currently mulling a switch and would further boost the euro's gradually growing share of global currency reserves.

That would be a huge boon to the euro zone economy and potentially catastrophic for the United States. Dollar-based global oil trade now gives the United States carte blanche to print dollars without sparking inflation -- to fund huge expenses on wars, military build-ups, and consumer spending, as well as cut taxes and run up huge trade deficits.




Yevgeny Gavrilenkov, chief economist at Troika Dialog and an earlier architect of the Putin government's first economic plan, said debate is growing on a move to the euro as Russia mulls siding with the EU. "Such an idea is really possible," he said. "Why not? More than half of Russia's oil trade is with Europe. But there will be great opposition to this from the United States."

<snip>

LOTS more at above link

is feckin' around with the US economy a terraist act ?

Dunno if Pootine is serious - or just sending a serious message?

Either way - the "Bear" is NOT asleep !

Just my Humble Canuk opinion

[htuttle]

1. There was a more concrete confirmation in the Telegraph

Here's the thread:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=159240&mesg_id=159240

Russia to price oil in euros in snub to US

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.

German officials said Chancellor Gerhard Schroder secured agreement for the change-over on oil pricing from Vladimir Putin, the prime minister, while on a trip to Russia this week.

(more at link in thread)

It's also from today, but I bet it was later in the day.

[yella_dawg]

2. Holy Shit Batman!

If this becomes a trend, completely screwed will be the best thing that can happen to the US economy.

[karlschneider]

3. It would not HAVE to, if we can rescue what's left of it from the prick in

the White House. But I'll bet 10 Euros that ain't gonna happen.

[Resistance Is Futile]

5. Bigger than Chimpy

While there's going to be a certain sour grapes (or should that be sour crude?) component to the Russian/German Euro deal, a wave of Euro migration would be more a result of long-standing economic problems rather than a repudiation of Chimpy's economic or military policies.

IOW, if value starts moving to the Euro in a big way, getting rid of Chimpy won't slow down or reverse the process.

[oneighty]

4. 180 said it first

A strong European Union and peace in the ME is the Republican's worse nightmare. Of course it might not be very good for 180 either!

180

[Resistance Is Futile]

6. Going further

Look at the growing cooperation between Russia, India and China. A cooperative eurasia stretching from Spain to China would be the fascists' worst nightmare.

[oneighty]

9. Yes

Somehow that vast area with its huge population is constantly ignored.

But they will not suddenly go away.

180

[madrchsod]

10. and add brazil to the mix

brazil is huge if they go with india-china-russia.look for venisulia (?) to be overthrown by bush next year.

[many a good man]

7. OH MY GOD !!!!!!!!!!

Its over. Banana republic here we come. Thanks, Dubya.

[E_Zapata]

8. Is there any way to see if Carlyle Group is also buying euros?

I am very curious.

I don't see the BFEE getting caught with its pants down....

(What I can envision is the BFEE getting rich and powerful off the USA and then use it to get even richer and more powerful by fucking the USA. That's the BFEE style.......)

[ConcernedCanuk]

11. __ May not be necessary - don't furget the "Roadmap"__

Remember GeeDubya' eloquent letter BEFORE the Invasion !!






http://www.martinsewell.com/iraq/humour/">MORE

[HR_Pufnstuf]

12. oil welllll...

...good think George is fighting to get that iraqi oil under the US dollar, or we'd be in bigger do-do... /sarc off

[cliss]

13. That's about the equivalent of

holding a loaded gun, pointed at Bush. I've read articles about Petrodollars versus the Euro. There is actually an article which claims that Iraq was actually bombed over this issue. Hussein had apparently converted his petrodollars into Euros, and because of a favorable exchange rate, he profited something like $452 million dollars.

This is seen as a direct threat to US interests, it's almost like declaring war.

So....Putin is definitely playing games. Just casually throwing out the threats....then smiles....puts the grenade back in his pocket....

[reprobate]

14. Saddam did this in 2000. There were big discussions here on it.

And I wouldn't count on this being a bluff on Putin's part. There has been a strong and growing anger at the US on the part of most of the world for a long time. When you're the big bully on the block and don't care what you do to others, you shouldn't be surprised when they start to unite and move against you.

By no means am I any kind of economist, but i do have the feeling that by moving to the euro that the EU will no longer be in the position of having to shore up our economy, and that would be a big plus for them, and a positive reason to make the move, beyond just getting even with us.

[ConcernedCanuk]

15. And Pooty-Poot has over 8,000 nukes - aimed wheredyathink ??

Like I said b4

The Bear is not dead -

The Bear is just in Hibernation

And ya don wanna be the one to wake up a hibernating Bear !!

(and don't think China isn't watching all this ME mess)

Just My Humble Canuk Opinion

[Flying_Pig]

16. Said Bush: "But Pootie-Poot, I though we had a thang goin' on?"

As Pootie stared at Bush's ass, he wondered how well he could grab his ankles, and whether he would enjoy what was about to happen to him.
:evilgrin:

This is BIG news. As Bush, the neocons, and Sharon, have shown no sign of contrition, and are planning more wars in Syria and Iran, I am sure they are thinking it is time to act. Notice that Putin made this announcement in the presence of Schroder of Germany. Plans are afoot to humble the Giant Neocon of the West. With one swift move, they could pull the rug out from under our phony-ass economy, and drive this nation into a severe depression. Perhaps it's what is needed to finally wake the sheeple up, and see the errors of their fascist supporting ways?

Regardless, If Russia decided to do this, there isn't much Bush can do. It will be the end for him, and the Republicans. I also wonder if during Poppa Bush's recent Russia visit, he was begging Pootie not to do this. Good job Pops!

[cthrumatrix]

17. Note the continued slide in the dollar .... that's the clue.

I would also like to know if Iraq is still purchasing oil in Euro's....when is shrub coming forward with that piece of data?

[ConcernedCanuk]

18. Hmmm - - and since when did the WH start telling the Truth ??? eom