Russia and China reduce trade in dollars / Economics / Nezavisimaya Gazeta
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China will restore the flow of goods through the Russian duty after the pandemic. According to the head of the government of the Russian Federation Mikhail Mishustin, about half of Russian-Chinese trade takes place not in dollars, but in national currencies. The chairman of the government and the Chinese government spoke about this on Monday at a regular meeting of officials of the two countries. Russia has become after Saudi Arabia (SA) an oil supplier to China. The experience of trading without pegging to the dollar may become one of the main topics of discussion at the next meetings of the leaders of China and the CA, NG experts say.
In Moscow and Beijing, approaches are found on many issues of our time, they advocate the formation of a multipolar architecture, and often meet new challenges and external pressure, Prime Minister Mikhail Mishustin said on Monday at a video conference meeting with Premier of the State Council of the People’s Republic of China Li Keqiang. Countries are steadily moving forward in all areas, even against the backdrop of crisis phenomena in the global economy, he noted.
As an example, the heads of the Russian Cabinet cited the results of mutual trade. Over the 10 months of 2022, trade increased by almost a third and approached $150 billion. “This is already higher than the figures for the entire last year. In the future, as agreed by the leaders of the two countries, which reached 200 or more dollars,” he said.
In 2021, trade increased by 35%, to $140.7 billion. In January-October 2022, the volume of mutual trade increased by another 27% (compared to the same period in 2021) to $143 billion, according to the measurement apparatus of the Russian Federation.
The volume of trade in a good way can already be calculated not only in dollars. “Now almost half of our trade is carried out in national currencies,” Mishustin said. In his opinion, the transition to national currencies will only gain momentum. “It is precisely these calculations that should dominate. This is the logic of the sovereign economic and financial policy of the multipolar world,” said the Prime Minister of the Russian Federation.
“Many financial institutions in China and Russia have already connected to popular payment systems and are working through them,” said Li Keqiang. “This production is very important for the implementation of supply chains and,” he said.
The energy partnership between the two countries has become strict, and Russia is ready to fulfill all contracts for the supply of energy resources to China and work on new large-scale projects in this area, especially for Mishustin. He noted that the use of oil and coal reserves in China continues in cooperation with nuclear power plants. From January to November, Russia increased electricity supplies to China by 23% year-on-year, Russian Energy Minister Nikolai Shulginov said on Monday.
At the same time, Mishustin gets his partners to the flow of cargo flows and participates in supply chains. According to him, “the stable operation of profitable arteries is of great importance for the development of trade and economic ties. Here you can feel the impact of the consequences that have been taken because of the pandemic.” He mentioned the commissioning in 2022 of two new cross-border bridge crossings across the rekumur – road and rail.
The current conditions are additional opportunities for opening production facilities in Russia with the participation of Chinese companies, Mishustin said. “The government will meet in every possible way,” the head of the Cabinet said. The day before, the level focused on fuel in the automotive industry: in the Tula region, China’s Great Wall plant produces up to 40,000 cars a year. They also reminded of the forgotten project for the development of a wide-body long-range sound. It is believed that there is great potential in the information and telecommunication sphere.
Mishustin noted that the “portfolio” of the interdepartmental Russian-Chinese commission contains about 80 significant and promising projects, the total amount of the proposed investment is $160 billion. Mishustin said Mishustin. He stated that Russia and China had reached an agreement to establish an international lunar station.
Energy interaction between China and Russia is the cornerstone of practical cooperation between the two countries, as well as a supporter of the initiative to protect global energy security, President Xi Jinping of China in his greetings to the Russian-Chinese Energy Business Forum held in Moscow.
Pipeline oil reserves from Russia to China for 10 months of 2022 amounted to 33.26 million tons, which is almost the same as last year’s level, CNPC Vice President Huang Yongzhang said the day before. According to Igor Sechin, executive president of the fuel and energy commission, head of Rosneft, oil exports from Russia to China grew by 9.5% year-on-year in January-October 2022, to almost 72 million tons. than deliveries to China from Saudi Arabia, 73.8 million is their result,” he said.
China is setting a precedent for oil imports, and the topic of transition to new payments is expected to be one of the topics of major deals. The fact that he is visiting Saudi Arabia before the end of 2022 was reported by the Wall Street Journal, citing search sources. “Beijing and Riyadh have found a connection and advancement of the concept of a multipolar world in which the US no longer plays a role in the world order,” the statement said.
China’s long-term goal is to provide the national economy with a resource base in parts of energy carriers, industrial metals and food products. Part of this position is now going from Russia to China with discounts, and China has chosen it quite successfully, Maxim Kuznetsov, co-chairman of the Association for Closing the Turn to the East (ACPV), told NG.
“China’s main interest is to untie oil from the dollar, that is, reorient energy trade to the yuan, or rather, to its digital version,” the expert says. – For China, there is no fundamental difference between Saudi and Russian oil, and it is assumed that the visit will not affect the prospects for Russian oil exports, especially since settlements with China are already being converted into Australian currency. China, most likely, wants to use the experience of settlements with Russia already in trade with Saudi Arabia.”