K Raveendran
The currency stand-off in the global gas market, triggered by Russian president Vladimir Putin’s announcement that Russian gas will henceforth have to be paid in roubles instead of dollar and euro is keeping the market on tenterhooks. It has upset the calculations of all important stake holders, including India, which has been hoping to utilise a window of new opportunity in view of the western sanctions as the country is not in the bloc that enforces the embargo against Moscow. The market is watching for the results of the next round of Russia-Ukraine negotiations, though not many share the optimism for a breakthrough.
By proposing that Russian gas should be paid in roubles, Putin has raised issues that go beyond the energy sector. Through the move he is seeking to challenge the dominance of the euro and US dollar currencies for energy transactions. Putin has…