Following President Putin’s statement at the end of June formalizing plans by the BRICS nations to create a new “international reserve currency,” Russia, along with Iran, is building the foundation for a global gas cartel The report said. Financial journalist and best-selling author Simon Watkins argues that “this alliance is aimed at controlling as much as possible of two key elements in the global supply matrix. At the same time, Russia intends to create a precious metals exchange called the Moscow World Standard (MWS).
The U.S. dollar and ruble remain robust, while massive spikes in commodity prices “hurt European economies the most.”
Last week, economists at Russia’s Ministry of Economic Development indicated that the decline in the country’s gross domestic product (GDP) will be much smaller than previously estimated. Moreover, Russian President Vladimir Putin again criticized the U.S., stressing that the U.S. needs a “conflict to maintain its hegemony.” Amid the Ukraine-Russia war, the U.S. dollar held steady, as did theRussian ruble. The Russian rubleis one of the best performing fiat currencies in the world.
Sanctions against Russia do not seem to affect transcontinental countries located in Eastern Europe, but rather everywhere in Europe. For example, Forbes author Kenneth Rapoza explains in his inreport explains that “European markets and energy security” have been “destroyed by Russian sanctions. The sanctions, LaPosa claimed, “caused massive commodity price spikes that hit the European economy the hardest.” Europe has suffered its worst inflation in years, {/netabare} reported. It is reported in detail that Russian oil is still being supplied to European gas stations at high prices.
Journalists claim that Russia and Iran are building the foundation of a global gas cartel
In late June, Putin explained that a new international reserve currency based on a basket of currencies was being considered by members of the BRICS. About two weeks after Putin’s statement, Russia’s Gazprom and Iran’s National Iranian Oil Company (NIOC)signed a Memorandum of Understanding (MoU)
The same day, Putin visited Tehran to discuss the issue with Turkish and Iranian leaders. oilprice.com financial journalist Simon Watkins (47) is of the opinion that the deal laid the foundation for a global gas cartel between Russia and Iran (48). The editorial further notes that global LNG supplier Qatar, the world’s largest liquefied natural gas company, may also join the partnership.
“Building on the current Gulf Exporting Countries Forum (GECF), this ‘gas OPEC’ would adjust an unusual proportion of the world’s gas reserves and allow control of gas prices in the coming years,” Watkins said on March 23. The author of oilprice.com added: “With Russia and Iran, which occupy first and second place respectively in the world’s largest gas reserves table, with just under 48 trillion cubic meters (tcm) and nearly 34 tcm, respectively, these two countries are ideally positioned to do this.”
Russia’s Plan to Establish a Moscow World Standard Precious Metal Exchange
Reports that the BRICS countries are in the process of considering a new international currency and the recent alliance between Gazprom and NIOC are follows efforts to move it. capital.com reports that Russiaintends to create its own precious metals exchangesimilar to the London Bullion Market Association (LBMA).
Seeing the discussion of Russia creating a new Moscow World Standard (MWS) to replace the London Bullion Market (LBMA) certainly has an impact… With fixed prices above the London quotes, it could make for an interesting showdown… h/t . Capitalist EXP
– David Cox, CMT, CFA (@DavidCoxWG) . 16 Aug 2022
Capital.com contributor Indrabati Lahiri says the Russian metals exchange initiative ” tentatively called the Moscow World Standard (MWS).” Additionally, Russia’s top gold producer Polius has issuedbondsin Chinese yuan, and the company has done it twice in 30 days. Reuters details that since the war between Ukraine and Russia began in February, “demand for yuan has increased.”
Simon Watkins’ opinion on what he thinks about Gazprom and NIOC signing the MoU. What do you think about the Moscow World Standard Precious Metals Exchange Initiative? Let us know what you think about this subject in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: Grigory Sysoyev, Sputnik, AP.
