> Russian funds were indeed frozen, but with the exception of banks processing gas payments so that can go ahead.
This is not correct. You have to understand that "money" at commercial banks is not money, but only a debt of that commercial bank with the account holder. Gas and other commodities are always paid in real money, which exists only in to flavors: Paper money and accounts directly at the respective central banks. This means you can have your real USD only on accounts at the FED and real Euros only at ECB etc. The West froze Russian accounts on EZB (the contracts are nominated to be paid in EUR) and at the same time wanted to pay the gas only on these accounts, which for obvious reasons was rejected by Russia. Russia requested to have their accounts unfrozen or paid in Rubels.
There was some face saving detours introduced into the payment process, but in the end the West pays now in Rubels.
Another example of self inflicted pain was when the West made it impossible for Russia to make debt payments. It was not Russia who suffered (they saved their payments), but the western creditors who lost their money.
I know a few investors who held Gazprom and Lukoil stocks over many years. They were factually expropriated because the brokers are refusing to process dividend payments or even selling the stock back to Russia. Again, not Russia was hit but citizens in the West.
This is not correct. You have to understand that "money" at commercial banks is not money, but only a debt of that commercial bank with the account holder. Gas and other commodities are always paid in real money, which exists only in to flavors: Paper money and accounts directly at the respective central banks. This means you can have your real USD only on accounts at the FED and real Euros only at ECB etc. The West froze Russian accounts on EZB (the contracts are nominated to be paid in EUR) and at the same time wanted to pay the gas only on these accounts, which for obvious reasons was rejected by Russia. Russia requested to have their accounts unfrozen or paid in Rubels.
There was some face saving detours introduced into the payment process, but in the end the West pays now in Rubels.
Another example of self inflicted pain was when the West made it impossible for Russia to make debt payments. It was not Russia who suffered (they saved their payments), but the western creditors who lost their money.
I know a few investors who held Gazprom and Lukoil stocks over many years. They were factually expropriated because the brokers are refusing to process dividend payments or even selling the stock back to Russia. Again, not Russia was hit but citizens in the West.