Gazprom, the world’s largest energy company, claims to have reached an agreement with China to begin accepting yuan and rouble payments in place of US dollars for gas shipments to China as a symbol of improving ties between Beijing and Moscow, which is subject to Western sanctions.
Following a video conference meeting with the chairman of China’s oil giant CNPC, Dai Houliang, Gazprom CEO Alexei Miller was cited as saying, “The new payment system is a mutually beneficial, fast, reliable and practical option.” He further added that “It will simplify computations and will become a superb example for other firms.”
Miller updated his Chinese colleague on “the status of construction on the project for gas supply via “the eastern route” – the “Power of Siberia” gas pipeline,” according to a statement from Gazprom.
Gazprom did not reveal further details about the scheme or the timings for when dollar payments will be switched to Yuan and Russian Roubles.
This development, in particular, is concerned with reducing the Russian reliance on the dollar which is subjected to serious US sanctions for its invasion of Ukraine. In addition, this shift will prove critical for Russian efforts to develop effective ties with China.
