However, after the Civil War Breakout, Russia Nation’s oil could not be transported, and it was naturally impossible for the Russian government to earn revenue.
Even for the purpose of raising loans, Nicholas II had already sold the mining rights to several important oil fields in the country for the next few years. The buyers included not only Australasia but also Britain, France, and some European countries.
Although only a few years of mining rights were sold, there were no restrictions on the scale of oil field exploitation.
This also means that if there is enough oil extraction equipment, other countries can extract oil crazily in Russia Nation for the next few years, without giving any revenue to the Russian government.
Russian people should be grateful that Arthur has not revealed his intentions on the Persian Gulf oil fields yet. Otherwise, the discovery of a large number of oil fields would inevitably lead to a significant drop in oil prices, and even if Russians wanted to auction off the mining rights to oil fields, the amount of loan obtained would definitely not be high.
"Prime Minister, when can the next aid from the World Alliance arrive? Also, how much funds are left in the government? Can it support us in launching the entire Summer Offensive?" Nicholas II rubbed his brow and turned his gaze towards his confidant, who is the current Tsarist government Prime Minister.
The so-called Summer Offensive is actually a counterattack plan jointly negotiated by the World Alliance Intervention Army Command, Poland, and Tsarist Russia.
When Poland first gained independence, Nicholas II was in disapproval. But there was no other choice, as the current situation in Russia Nation could not afford the loss of foreign aid. Reluctant, Nicholas II had to lower his head and pinch his nose to recognize Poland’s independence.
Of course, this could not necessarily mean bad news for Tsarist Russia. Besides not being able to obtain the complete territory after the civil war victory, Tsarist Russia could at least gain another ally in the current civil war.
Besides, Poland’s position is also crucial - with one in the west and the other at the north of Saint Petersburgh, and the World Alliance having conquered Kiev, it is in a perfect surrounding situation for Moscow. A siege had already formed. Explore more stories at empireThe Summer Offensive is about the three-party army launching a full-scale encirclement of Moscow, intending to capture all Soviet troops in the urn, and quickly end this civil war.
"According to the news from Britain and France, the new batch of weapon and equipment aid should arrive in two weeks," the Prime Minister replied: "The domestic finance is a big problem. Over sixty percent of our annual fiscal revenue has been used for war, and twenty percent for purchasing supplies. Only twenty percent has been used to maintain the operation of the government and other affairs.
And the funds of various departments had been reduced to the lowest point, which could cause problems if it continues like this. If we can get another loan, perhaps it can help us get through the summer."
Russia’s complete financial situation is not too good, let alone the current Russia divided into four (Soviet Russia, Tsarist Russia, Poland, Ukraine).
Although there is aid from other countries and a lot of loans, Russia’s current finances can only be described as biting the bullet and holding on.
If any foreign loan is canceled, Russia’s finances will have no room for turnover, and bankruptcy is inevitable.
"Hmm." Nicholas II nodded silently and sighed briefly to signal his understanding.
After contemplating for a long time, he said, "I will handle the issue of funds and strive for a loan of at least 20 million pounds. Prime Minister, after that, can the government last until the end of the Summer Offensive?"
"If there are 20 million pounds, then there won’t be any problem, Your Majesty." The Prime Minister quickly nodded, fearing that Nicholas II would change his mind.
That night, the Russian Ambassador to Australasia urgently sought an audience with Arthur and explained his purpose.
Arthur received the Russian ambassador, looked curiously at the new Russian Ambassador Levgeny, and asked, "Does His Majesty Nicholas have any urgent matter?"
"Your Majesty! Russia Nation needs your support!" The Russian ambassador said earnestly and confidently.
"Support? Haven’t you received the weapons and equipment from Australasia? The latest batch of weapons and equipment should have arrived last month, right?"" Arthur seemed stunned for a moment and asked incredulously.
"We did receive the weapons and equipment, Your Majesty, but Russia needs more support." The Russian ambassador quickly explained.
"We are planning a new offensive, and government funds are meager. We ask Your Majesty to approve a loan on behalf of the friendship between Australasia and Russia to help the Russian government during this crisis." The Russian ambassador continued.
Seeing that he came to ask for a loan, Arthur did not refuse and smiled, "Mr. Ambassador, you should understand. If you want to seek a national loan, you should find the government instead of me. If you need a loan from the private sector, I am more than willing to introduce you to the heads of various banks in Australasia, but specific loan matters still require you to negotiate personally." ℞АNȱ฿ÈS̈
Long-term aid has made Arthur realize that Tsarist Russia seems to be like a figure unable to stand, and it is almost impossible to win this civil war.
This also means that lending to Tsarist Russia is actually risky.
Before Nicholas II had any credible collateral, Arthur wouldn’t be foolish enough to actively grant loans to the Russian government. Therefore, passing the buck was the best way.
After all, what Arthur said wasn’t wrong - I am willing to introduce you to the heads of banks, but whether you can get a loan depends on your own negotiating abilities and eloquence.
"Your Majesty, Tsar Nicholas once said that Australasia and Russia Nation are always sister countries and that we have a good relationship, which is why I came to you.
If your Majesty is willing to lend, we can use the mining rights of the oil fields as collateral for five or ten years." The Tsar’s ambassador continued to appeal.
Arthur remained unmoved, as playing the sentimental card between national interests was useless, and the mining rights of the Russian oil fields held no allure for Arthur.
Jokingly, wouldn’t the oil fields in the Persian Gulf be more attractive than those in Russia Nation? You should know that extracting oil from Russia Nation still requires the construction of relevant oil pipelines to transport it overseas at lower costs.
Otherwise, just the cost of transportation and refining would far exceed importing oil from other countries. What use would Russia Nation’s oil mining rights be?
Furthermore, it is uncertain who will hold Russia’s dominance in the future. If Soviet Russia emerges victorious, will they honor Australasia’s oil mining rights? Probably not.
Seeing that various words could not move Arthur, the Russian ambassador finally went straight to the point and said, "Your Majesty, Tsar Nicholas II is willing to exchange a batch of gold for a large loan from Australasia. If Your Majesty is willing, we can negotiate in detail on the amount of gold."
At this point, Arthur nodded.
It became clear that the final goal of the Russian people should be to use gold to exchange for loans. Various emotional cards and other requests were meant to test the waters. Naturally, it would be preferable to exchange loans at the lowest cost possible, and nobody would want to sell the gold they had in hand.
You should know that most countries’ currency systems still use the gold standard, and the value of gold is still very high.
Basically, the amount of gold reserves a country has also determines how many currencies the country can print at most.
Although currency printing can be unlimited, printing an imbalanced amount of currency compared to gold could easily lead to the collapse of the paper currency system, which no other country would generally do.
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