THEO VAN GOGH BACKGROUNDER BY MEMRI Special Dispatch No. 10193
Chinese Media Outlet ‘Global Times’: Russia’s Gazprom Will Export Natural Gas To China And Receive Payment In Rubles And Yuan Instead Of Dollars
On September 7, 2022, at the Eastern Economic Forum plenary session, Russian President Vladimir Putin announced that Russia’s Gazprom and its Chinese partners had decided that China would pay Gazprom for natural gas with 50% Russian rubles and 50% Chinese yuan, instead of with U.S. dollars. “It is in front of our eyes that the dollar, euro, and pound sterling have lost trust as currencies suitable for performing transactions, storing reserves, and denominating assets.
We are taking steps to shed this dependence on unreliable and compromised foreign currencies. By the way, even allies of the United States are gradually reducing their dollar assets, as we can see from statistics. Step by step, the volume of transactions and savings in dollars is diminishing,” Putin said.
The Chinese media outlet Global Times reported on the change in the currency used by the two countries for payments for natural gas. Liang Haiming, dean of the Belt and Road Institute at Hainan University, told Global Times: “Exploring China-Russia currency swaps and expanding the scale of national currency settlement will protect bilateral trade and investment from the volatility of exchange rate risks inherent in using a third currency, such as the dollar, and boost bilateral economic and trade exchanges.”
It is worth noting that Putin and Chinese President Xi Jinping are expected to meet on the sidelines of the Shanghai Cooperation Organization (SCO) summit in Uzbekistan, which will take place on September 15-16.
Below is the Global Times article:
‘China And Russia Have Moved To Strengthen Their Energy And Financial Cooperation’
“China and Russia have moved to strengthen their energy and financial cooperation with the signing of an agreement on Russia’s eastern natural gas pipeline to China, and a switch of the gas payment currencies from the U.S. dollar to Chinese yuan and Russia ruble.
“Russian President Vladimir Putin said on Wednesday that China would pay Gazprom for its gas based on a 50-50 split between the ruble and yuan, according to Sputnik News.”