Gazprom, Russia’s state-backed energy behemoth has announced that it had signed an agreement to start out switching payments for gas supplies to China to yuan and roubles as an alternative of dollars. This deal delivers a blow to the US and Europe’s attempts to punish Vladimir Putin through crippling sanctions, as Russia will now be less depending on dollars and euros for energy trade.
As relations between Moscow and the EU worsen for the reason that invasion of Ukraine, Putin has been turning towards China, deepening economic ties and striking larger long-term gas deals.
Gazprom CEO Alexei Miller noted that this move to permit for payments in Russian roubles and Chinese yuan was “mutually helpful” for each Gazprom and Beijing’s state-owned China National Petroleum Corporation (CNPC).
He said: “It’s going to simplify the calculations, turn into a superb example for other corporations and provides a further impetus for the event of our economies”.
Because the invasion of Ukraine, Russia has been ending its reliance on US dollars for energy trade, which constitutes its largest exports.
Earlier this yr, he demanded that unfriendly countries pay for Russian gas with roubles by opening rouble bank accounts with Gazprombank.
Given how heavily dependent European countries are on Russian energy exports, many were forced to comply with his terms.
Meanwhile, Russia has cut supplies to countries including Poland, Bulgaria, Finland and the Netherlands for refusing the terms of the deal.
Russia escalated tensions further when Gazprom said on Friday the corporate won’t restart gas flows through the important thing Nord Stream 1 pipeline, despite it being scheduled to come back back online on Saturday.
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