Moscow: Russia and China will stop trading in dollars for energy.

Moscow: Russia and China will stop trading in dollars for energy.

Settlements in the two countries’ respective national currencies have been encouraged.

According to Aleksandr Novak, deputy prime minister of Russia, energy trade between China and Russia has been increasing steadily and is up 64% in dollars so far this year.

After a meeting of the intergovernmental Russian-Chinese commission on energy cooperation, he made these remarks.

He declared, “China is our strategic partner in the Asia-Pacific region and generally in trade,” noting that the increase in physical supplies of oil, gas, coal, and electricity was about 10%.

The deputy prime minister clarified that the two nations want to strengthen their trade ties and are working to increase the proportion of domestic currencies used in energy transactions.

As for the supplied energy resources, “we are switching to settlements in rubles and yuan,” Novak said.

To move away from the US dollar and the euro, Russia and China have increased the use of domestic currencies in settlements between the two countries in recent years. Moscow has been steadily pursuing a de-dollarization policy in its international trade and has used the yuan more frequently in particular. Along with being used more frequently in trade settlements, some Russian businesses have started issuing bonds in yuan, and many banks are now accepting deposits in the currency.

The national currencies, according to Novak, have also been used to buy various pieces of equipment from China.

He stated that an intergovernmental agreement on the Far East gas export route is anticipated to be signed by Moscow and Beijing soon. The Power of Siberia 2 mega project, which would significantly increase China’s access to Russian natural gas, is also still under discussion between the two nations.

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