Russia and China switch to national currencies for gas payments

Russia and China switch to national currencies for gas payments
Russia and China switch to national currencies for gas payments

Russia and China have switched to national currencies in their natural gas trade, implementing an agreement they signed in early September, a Russian official said on Friday.

Noting that Beijing was already paying for Russian gas on a rouble-yuan parity basis, Deputy Prime Minister Alexander Novak said in a TV interview that payments in national currencies covered Russia’s gas supplies and equipment sales. from China.

Novak also told Rossiya 24 TV that the two countries are also actively moving to payments in their national currencies for oil supplies and petroleum products.

Russian energy giant Gazprom announced on September 6 an agreement with state-owned China National Petroleum Corporation (CNPC) to use national currencies in natural gas payments.

They signed a long-term gas purchase and sale agreement to supply gas from Russia to China via a route in the “Far East”, where Gazprom has started designing and building a gas pipeline.

Gazprom expands deliveries to Asia due to sanctions

Due to the restrictions imposed by Western countries on the Russian banking system, Russia is trying to move away from using dollars and euros as a means of payment in international agreements.

Russian President Vladimir Putin has called Western countries imposing sanctions on his country “unfriendly countries” and said they had to pay for gas supplies in roubles.

Gazprom aims to increase supplies to Asian markets, particularly China, as natural gas exports to Europe have fallen sharply due to sanctions.

Last year, Gazprom transported 10.4 billion cubic meters of natural gas to China through the Power of Siberia pipeline, which has an annual gas capacity of 38 billion cubic meters.

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. Russia China pass to national currencies for payments gas

. Russia China switch national currencies gas payments