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Erdogan confirms payment for Russian oil and gas in rubles | Financial

According to the Turkish president, the agreement is beneficial for both countries. Russia has been trying to get money for fossil fuels in rubles for some time. The country can’t do much with payments in dollars because it can’t exchange that currency due to sanctions that Western countries have imposed on Russia after the invasion of Ukraine.

For Turkey, the partial payment has the advantage of reducing the need to draw on its dollar reserves. Those reserves have already dwindled as Turkey has spent billions of dollars to prop up its own lira. It fell as a result of the very high Turkish inflation and the declining confidence in the Turkish economy against the dollar.

Turkey goes for MIR

In addition to payments in rubles, Turkey will also embrace the alternative Russian payment system Mir. Russia is trying to promote that because it is cut off from the international payment system SWIFT. Five Turkish banks will work on the integration of the Mir system. This should make it easier for Russian tourists to pay for things in Turkey. In the first half of this year, more tourists came to Turkey from Germany alone than from Russia.

Erdogan confirms payment for Russian oil and gas in rubles | Financial
Source link Erdogan confirms payment for Russian oil and gas in rubles | Financial

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