The world according to GRP — Monday, June 12, 2006:
First the petroeuro...
Move over, Iran: The biggest story not reported by the corporate media last month was Vladimir Putin's declaration that Russia must open an oil and gas exchange denominated in... euros? No, you fool — rubles!
In a speech to both houses of parliament on May 10, 2006, President Putin said: "The ruble must become a more widespread means of international transactions. To this end, we need to open a stock exchange in Russia to trade in oil, gas, and other goods to be paid for with rubles." He also urged that the ruble be made convertible by July 1, 2006, six months ahead of the original schedule.
The following day, presidential adviser Arkady Dvorkovich said that the exchange could be fully operational by 2007. On May 19, the Russian stock market RTS announced that oil futures trading in rubles would begin in 2007.
These developments were duly reported (in English) by the Russian newsagency RIA Novosti on the 10th, 11th, and 22nd of May.
Meanwhile, Iran has been accepting payment for oil in euros since 2003, although prices are still quoted in U.S. dollars. This situation was expected to change on March 20, 2006, when the Iranian oil bourse was due to open in the free trade zone on the island of Kish in the Persian Gulf, establishing a euro-denominated international price marker. But the bourse failed to open on the due date; this too was promptly reported by RIA Novosti. On June 5, United Press International reported that the International Bourse Co. was registered in May, and that its board of directors would consider the final draft of the oil bourse's articles of association "this week". The articles would then be submitted to Iran's regulating authority for approval.
Copyright © Gavin R. Putland except as otherwise attributed. Posted at The world according to GRP under the title First the petroeuro.... You may republish this item verbatim on your website or blog provided that you include this notice (with hyperlinks).
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