Judging from these actions of Britain and the European Union, European countries have really given in now. This shows that Russia's announcement of using rubles to settle natural gas and oil has played a certain role, and the reason why Russia can achieve this effect is really because they deeply understand the weakness of Europe, that is, Europe relies heavily on Russian energy.
Russia is a country that relies on energy to promote economic development. The export of oil, natural gas and coal every year creates a large amount of foreign exchange for Russia, which also plays a vital role in stimulating the development of Russia's GDP. Moreover, at present, a large part of Russia's energy exports are exported to the European Union, which is Russia's largest energy import destination. At present, about 40% of the EU's natural gas, 30% of its oil and 35% of its coal are imported from Russia.
However, after the EU announced that it would reduce the import of crude oil and natural gas from Russia and even kick most Russian banks out of the Swift system, Russia suddenly offered a cold trick to the EU, that is, it announced that it would settle oil and natural gas with rubles. This move made the EU unexpected. They believe that by restricting Russia in the financial system, Russia's energy exports may be paralyzed.
Since the EU reduced its energy imports from Russia, the prices of natural gas, electricity and refined oil in European countries have all risen sharply recently. Compared with the same period last year, energy prices in Europe have increased by at least 40%. Driven by energy prices, inflationary pressures in Europe have soared. In March, the inflation level in the EU has reached more than 7.5%, which is also the highest level in recent decades.
Under the background of rising prices, the living cost of residents is getting higher and higher. Many industrial enterprises have increased their production costs, reduced their profits and reduced their product competitiveness because of the rising energy costs. Even some enterprises can't bear the rising cost and choose to reduce production or stop production. It can be seen that the impact of Russia's reduction of energy imports on the EU is very direct and extensive.
If European countries really make up their minds to completely ban the import of oil or natural gas from Russia, the prices in Europe will rise further. At the same time, there may be greater turmoil and greater economic recession in Europe. For example, according to the latest report of five authoritative economic research institutions in Germany, if Russia's natural gas supply is suddenly cut off, the German economy will fall into recession next year, and the economic losses in the next two years will reach 220 billion euros.
It is precisely because of the deep awareness of the EU's high dependence on Russian energy that Russia is not in a hurry after Europe and the United States announced financial restrictions on Russia. Instead, the ruble is linked to gold, interest rates are raised, and then the ruble is announced to settle oil and gas. , cancel the financial restrictions in Europe and America. So in the end, Europe and the United States imposed many restrictions, and the result was reversed. In the end, Europe and the United States suffered.
And things have developed to this point today, and Russia's attitude is even tougher than that of the European Union. At present, Russia insists that if the EU wants to import Russian natural gas and oil, you must settle it in rubles. Because you settle in dollars or euros, Russia can't use it, because many Russian banks have been kicked out of the SWIFT system, Russian foreign exchange has been frozen, and even some overseas assets of Russian countries and enterprises have been frozen. They can't use dollars or euros to buy things normally, so euros and dollars have little influence on Russia.
At this time, Russia will give Europe two choices, either you stop importing oil or natural gas from Russia completely, or you settle the account in rubles. Of these two options, after weighing the pros and cons, Europe can only make a compromise and choose to use rubles for settlement. Things have come to this point today. It can be said that he dug a big hole for himself in front of Europe. They had hoped that Russia would fall into the pit, but it was themselves who finally fell into the pit.