Changes

On February 7, 2022 [[Michael Hudson]], a research professor of Economics at University of Missouri, Kansas City, wrote:

On February 7, 2022 [[Michael Hudson]], a research professor of Economics at University of Missouri, Kansas City, wrote:

{{quotebox-float|"The only way left for U.S. diplomats to block European purchases [of Russian gas] is to goad Russia into a military response and then claim that avenging this response outweighs any purely national economic interest. As hawkish Under-Secretary of State for Political Affairs, [[Victoria Nuland]], explained in a State Department press briefing on January 27 [2022]: “If Russia invades Ukraine one way or another [[Nord Stream 2]] will not move forward.” The problem is to create a suitably offensive incident and depict Russia as the aggressor.<ref>https://www.nakedcapitalism.com/2022/02/michael-hudson-americas-real-adversaries-are-its-european-and-other-allies.html</ref>}}

{{quotebox-float|"The only way left for U.S. diplomats to block European purchases [of Russian gas] is to goad Russia into a military response and then claim that avenging this response outweighs any purely national economic interest. As hawkish Under-Secretary of State for Political Affairs, [[Victoria Nuland]], explained in a State Department press briefing on January 27 [2022]: “If Russia invades Ukraine one way or another [[Nord Stream 2]] will not move forward.” The problem is to create a suitably offensive incident and depict Russia as the aggressor.<ref>https://www.nakedcapitalism.com/2022/02/michael-hudson-americas-real-adversaries-are-its-european-and-other-allies.html</ref>}}

[[File:Druzhra pipeline.jpg|right|300px|thumb|Druzhra pipeline]]

[[File:Druzhra pipeline.jpg|right|300px|thumb|Druzhra pipeline]]

After being kicked out of the SWIFT payment network and the [[petrodollar]] system in which global crude oil contracts are valued in dollars, Putin announced all gas contracts with “unfriendly” countries must pay for Russian gas in rubles.  Since all the large Russian banks are sanctioned, buyers in "unfriendly" countries must find smaller Russian banks to work with, meaning they won’t get the best rates, and there will be other transaction costs and inconveniences.  ''[[Bloomberg News]]'', ''[[The Wall Street Journal]]'' and many thinktanks said for decades that Russia's biggest problem was eighty to a hundred billion dollars a year leaking out of the country as the rich took their profits to [[London]], [[Cyprus]], or [[Switzerland]].  Sanctions ended those capital outflows, and recapitalized Russia’s banking system.  All the new demand for Russian currency is expected to lift the ruble above where it was when sanctions hit, literally making Russia profit from sanctions.

After being kicked out of the SWIFT payment network and the [[petrodollar]] system in which global crude oil contracts are valued in dollars, Putin announced all gas contracts with “unfriendly” countries must pay for Russian gas in rubles.  Since all the large Russian banks are sanctioned, buyers in "unfriendly" countries must find smaller Russian banks to work with, meaning they won’t get the best rates, and there will be other transaction costs and inconveniences.  ''[[Bloomberg News]]'', ''[[The Wall Street Journal]]'' and many thinktanks said for decades that Russia's biggest problem was eighty to a hundred billion dollars a year leaking out of the country as the rich took their profits to [[London]], [[Cyprus]], or [[Switzerland]].  Sanctions ended those capital outflows, and recapitalized Russia’s banking system.  All the new demand for Russian currency is expected to lift the ruble above where it was when sanctions hit, literally making Russia profit from sanctions.