Gazprom-CNPC agreement, Beijing will pay gas in rubles and yuan

The de-dollarization of the oil market continues: for the CEO of the Russian giant ‘it is a mutually advantageous, timely, reliable and practical solution’ The path of ‘strengthened’ friendship between Russia passes through the abandonment of the dollar as a reference currency and China. This is confirmed by the agreement reached between Gazprom and the China National Petroleum Corporation (CNPC) for the payment in rubles and yuan of energy supplies through the ‘Power of Siberia’ gas pipeline. The agreement – reports the Kommersant newspaper – was reached during a meeting between the number one of the Russian energy giant Alexey Miller and the chairman of the board of directors of CNPC Daya Khoulyan: the meeting took place via videoconference in the context of of the Eastern Economic Forum and saw the achievement of further long-term agreements for the purchase and sale of gas along the ‘eastern’ route. Miller called the new payment mechanism “a mutually beneficial, timely, reliable and practical solution” that will simplify transactions as well as “give further impetus” to the development of their respective economies. In February, Gazprom and CNPC signed a second agreement in long term on the supply of natural gas to China for a further increase of 10 billion cubic meters per year of gas supplies for a total of 48 billion cubic meters exported. Already in May, Gazprom had reported that gas exports to China had grown by almost 60% since the beginning of the year and the summer months – confirmed the Russian group – the trend has further increased.