China-Russia gas deal in yuan, roubles underscores efforts to reduce US dollar hegemony
- China will begin paying Gazprom half in roubles and half in yuan for Russian gas supplies, the company announced
- Analysts say the deal affirms a longer-term ambition for Russia and China in diversifying cross-border payments
Beijing and Moscow are trying to insulate themselves from Western pressure by agreeing to settle payments for Russian gas supplies to China in roubles and yuan, experts say.
Russia’s state-owned gas giant Gazprom announced on Tuesday it had signed new agreements with China National Petroleum Corporation (CNPC) related to the eastern route pipeline, which is also known as the Power of Siberia Pipeline.
“Settlements for Russian gas supplies to China will now be made in the national currencies of the two countries, i.e. the rouble and the yuan,” said Gazprom in a statement.
Gazprom chairman Alexey Miller said after a meeting with Dai Houliang, his counterpart at CNPC, the new payment mechanism was “mutually beneficial, timely, reliable and practical decision”.
What’s at work goes way beyond sanctions imposed on Russia by the European Union and the United States
“I believe that it will make settlements easier, serve as a great example to other companies, and give a new impetus to our economies,” Miller said.