Russia and China trade energy resources in national currencies
Deputy Prime Minister Alexander Novak also noted that the energy trade between Russia and China has grown by 64% in monetary terms this year. As a result, only 10%
Russia and China are switching to the purchase of energy resources in national currencies, declared Deputy Prime Minister Alexander Novak following the meeting of the Russian-Chinese Intergovernmental Commission.
According to him, payment in national currencies is for raw materials, mutual settlements, which usually include, among other things, the supply of equipment from China. “As an example, gas supplies today between Gazprom and China are on a parity basis in rubles and yuan,” the deputy chairman of the resolution noted.
The fact that Gazprom switched to a parity fee in the national currencies of the two countries, reported back in September. comments leading expert of the Financial University and the National Energy Security Fund Igor Yushkov:
— What does payment in rubles and yuan mean? This means that Chinese companies are still listed on the Russian stock exchange, they exchanged yuan for rubles, and these rubles were given to market companies, including Gazprom for the supplied gas. In any case, yuan enters Russia, but it’s good that these yuan are also in demand, because they are produced, that these yuan are bought by importing companies, they go to China and spend these yuan there just to buy any equipment. China is very cautious about selling to Russia some equipment that is in the gray zone of observation, on the border or under sanctions, and here China clearly does not show any altruism. But the same large trade in national currencies, it just reduces the risk of these risks. If China regulates something, this is what is in the gray supervisory service of Russia, then the use of the national currency allows you to ensure the security of information about such operations of trade sanctions regulators of the United States, the EU or someone else. But in any case, this is precisely the saturation of the Russian financial market with yuan. The more goods imported from China, the easier it will be to withdraw the yuan from Russia, and, accordingly, not to adjust the ruble against the yuan, because this is also not good for imports.
– Novak of the economy, that the heads of government of Russia and China will meet in December, it means that the parties are developing cooperation in the energy sector. Do you think it’s worth waiting for some big breakthrough?
– A breakthrough or at least some progress is expected in the gas issue, if it were still possible to agree with China on the construction of Power of Siberia – 2, because our gas supplies to the European nuclear stream, and when, for example, export pipeline gas is consumed in the western direction, Gazprom has to stop production just for the same amount. Here pass for a long time and very difficult. Now here is Novak, as he sent out an approximation on the fact of the fact of the signing of an international agreement, but even the signing of an international agreement on the “Power of Siberia – 2”. China believes that time is on its side, that the worse relations between Russia and Europe in the gas sector, the more accommodating the concept of “Gazprom” will be. The Russian task is to convince China that the longer it drags out with the signing of the contract, the greater the risks for it, because today it is under pressure on the topics of chips, high technologies, tomorrow it will be prevented from starving resources.”
Novak also notedthat the energy trade between Russia and China this year has grown by 64% in monetary terms. The vaccine is only 10%. At the same time, repeatedly in the Western media reportedthat China buys Russian energy resources at a discount.
Previously Reuters citing unnamed sources, wrote that another major importer, India, is still refusing to trade with Russia in rupees and rubles due to fears of elimination and problems with the liquidity of the ruble.
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