Yaakov C Lui-Hyden
1 min readAug 2, 2022

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Although I consider Russia’s future bleaker than you describe, due to the massive brain drain and $600 million injected already into Georgia’s and Armenia’s economies alone thanks to fleeing Russians- most of your history is on point and validated by many years in Russia. I also think the parallel import strategy will be only partially successful, with Kazakhstan(the likely partner) already declining to take part(at least officially). Enforcement of that will be telling. Should parallel imports become the norm, the Ruble will finally weaken again, even Russia doesn’t want its ruble this strong, a weaker ruble is a net positive to the government when it receives payments in Euro and USD. The gas for rubles is a clever bit of financial engineering. European companies still pay in Euro and USD, which gets converted by gazprombank through a secondary account and the gas companies receive the money in rubles. The state bank then gets to keep the usd and euro instead of the gas company and build up its reserves- though much harder for gas companies who might have dollar denominated debt. But it’s good for the government and keeps that foreign currency within Russia instead on foreign computers that can be seized(which I would argue is the primary purpose of this measure more than ruble support).

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Yaakov C Lui-Hyden
Yaakov C Lui-Hyden

Written by Yaakov C Lui-Hyden

Yaakov is a world traveller and is accused of being an Australian. Published several novels. He writes about travel, writing, geopolitics and trading.

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