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Russia’s Gazprom Neft signals shift away from US dollar payments in China
- Chinese currency being used for some jet fuel settlements, firm’s chief executive says
- Shift to local currencies part of bigger response to US sanctions, analyst says
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A Russian oil company has started settling some aviation fuel payments in the yuan in China as Moscow and Beijing look to cut reliance on the US dollar and increase cooperation in the energy sector.
Alexander Dyukov, chief executive of Gazprom Neft, the oil arm of Russian gas giant Gazprom, said on Friday that the company had started using the yuan in China for aviation fuel settlements.
At the Eastern Economic Forum in the Russian city of Vladivostok, Dyukov said a deal had been reached with China’s national jet fuel operator to start the shift from September and the terms could apply to all the settlements by the end of this year.
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Chinese airlines could also soon use roubles to buy jet fuel at Russian airports, he said.
Gazprom Neft is the third-biggest oil producer in Russia and operates at 34 airports in China.
Yang Jin, a Russian affairs specialist at the Chinese Academy of Social Sciences, said the two countries were on a de-dollarisation drive to counter US sanctions pressure, and to have their own currencies play a bigger international role.
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