Brussels shoots itself in the neck as it bans euro-notes deliveries to Russia

Hiram’s notes: Remember that this is the primary way that the EU pays for Russian energy supplies so to ban the sale of or transfer of Euros to Russia, the EU would have to seek Russia’s approval to buy Russian Rubles in order to facilitate energy exchanges and purchases.

This actually gives Russia the incentive to require Europe to use only Rubles, meaning that the EU might have just the idea of Russia accepting US dollars or Euros for energy purchases. Thus sealing the fate of both currencies.

Latest measure in a barrage of sanctions over Ukraine

The EU has banned the sale, supply and export of euro-denominated banknotes to Russia, according to a statement made by the European Union on Wednesday.

“It shall be prohibited to sell, supply, transfer or export euro-denominated banknotes to Russia or to any natural or legal person, entity or body in Russia, including the government and the Central Bank of Russia, or for use in Russia,” read the statement published in the Official Journal of the European Union.

It is the latest measure in a barrage of sanctions aimed at weakening the Russian economy after the country launched an invasion of Ukraine last week.READ MORE: EU cuts off seven major Russian banks from SWIFT

The EU and the US have introduced sanctions against several leading Russian banks in response to the ongoing conflict in Ukraine, as well as excluding them from the SWIFT international payment transfer system. They have also frozen the assets of the Central Bank, introduced aviation restrictions, and targeted other industries.

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