Re:UK energy bills are soaring to record highs
by neilwilson on Saturday August 27, 2022 @11:53PM
(#32625606)
"and sources of income all of the sudden"
I explained why it isn't their source of income. They have their own currency with a floating exchange rate. Therefore what you think is their 'source of income' isn't. The FX system means that a Russian exporters 'source of income' (that which they use to pay their staff and suppliers) is the expenditure of the Russian importer, or the generosity of the Russian government sector - primarily the Bank of Russia. [0]
In local currency terms it is the Bank of Russia buying the gas, not the EU. That maintains the rouble monetary circulation in Russia, countering the drain to Rouble net savings and taxation.
I explained why it isn't their source of income. They have their own currency with a floating exchange rate. Therefore what you think is their 'source of income' isn't. The FX system means that a Russian exporters 'source of income' (that which they use to pay their staff and suppliers) is the expenditure of the Russian importer, or the generosity of the Russian government sector - primarily the Bank of Russia. [0]
In local currency terms it is the Bank of Russia buying the gas, not the EU. That maintains the rouble monetary circulation in Russia, countering the drain to Rouble net savings and taxation.
[0]: https://new-wayland.com/blog/how-russian-gas-is-paid-for/