Why does Russia insist on oil payments in rubles and Europe refuses?

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The Politicus
Apr 29, 2022 10:37 AM 0 Answers
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Many European countries import oil and/or gas from Russia. Russia demands payment in rubles, the European countries mostly insist on payment in Euros. I'm sure both sides have good reasons, but I don't get them.

Let's say Germany owes one million Euros. The current exchange rate is 100 rubles for 1 Euro. We may assume that this is artificially high, and actually one Euro is worth say 200 rubles.

Germany could exchange one million Euros for 100 million rubles and send that to Russia, but they refuse. But Russia could also take a one million Euro payment and exchange it for 100 million rubles, exact same result. But they both refuse. So I must be missing something, but what am I missing here?

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