June 4, 2023

The shift is part of Russia’s push to reduce reliance on the dollar, euro and other hard currencies in its banking system and trade – a push that Moscow has accelerated since the blow Western sanctions as a response to the Ukrainian invasion.
Russia has always Building closer economic ties with China and other non-Western countries, especially as new markets for their important hydrocarbon exports.

Gazprom chief executive Alexei Miller said allowing payments in Russian rubles and yuan was “mutually beneficial” for both Gazprom and Beijing’s state-owned China National Petroleum Corporation.

“It will simplify calculations, be a model for other companies, and give our economy an extra boost,” he said.

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Gazprom did not provide further details on the plan or when the payments would be converted from dollars to rubles and yuan.

Earlier this year, Russian President Vladimir Putin forced European customers to open bank accounts in rubles with Gazprom and pay in Russian currency if they wanted to continue receiving Russian gas. Supply was cut from some companies and countries that rejected the terms of the deal.

Russia signed a landmark $37.5 billion deal to extend its natural gas supply to China on the eve of the invasion.

It began delivering natural gas to China in late 2019 via the 3,000-kilometer (1,865-mile) Siberian gas pipeline. Putin hailed the move as “a real historical event, not only for the global energy market, but for us, Russia and China.”

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