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Gazprom Begins Accepting Payment For Oil In Ruble, Yuan

Gazprom Begins Accepting Payment For Oil In Ruble, Yuan thumbnail

Several months ago, when Russia announced the much anticipated “Holy Grail” energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar’s stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative.

This changed in late June when first Gazprom’s CFO announced the gas giant was ready to settle China contracts in Yuan or Rubles, and at the same time the People’s Bank of China announced that its Assistant Governor Jin Qi and Russian central bank Deputy Chairman Dmitry Skobelkin held a meeting in which they discussed cooperating on project and trade financing using local currencies. The meeting discussed cooperation in bank card, insurance and financial supervision sectors.

And yet, while both sides declared their operational readiness and eagerness to bypass the dollar entirely, such plans remained purely in the arena of monetary foreplay and the long awaited first shot across the Petrodollar bow was absent.

Until now.

According to Russia’s RIA Novosti, citing business daily Kommersant, Gazprom Neft has agreed to export 80,000 tons of oil from Novoportovskoye field in the Arctic; it will accept payment in rubles, and will also deliver oil via the Eastern Siberia-Pacific Ocean pipeline (ESPO), accepting payment in Chinese yuan for the transfers. Meaning Russia will export energy to either Europe or China, and receive payment in either Rubles or Yuan, in effect making the two currencies equivalent as far as the Eurasian axis is conerned, but most importantly, transact completely away from the US dollar thus, finally putin'(sic) in action the move for a Petrodollar-free world.

More on this long awaited first nail in the petrodollar coffin from RIA:

The Russian government and several of the country’s largest exporters have widely discussed the possibility of accepting payments in rubles for oil exports. Last week, Russia began to ship oil from the Novoportovskoye field to Europe by sea. Two oil tankers are expected to arrive in Europe in September.


According to Kommersant, the payment for these shipments will be received in rubles.


Gazprom Neft will not only accept payments in rubles; subsequent transfers via the ESPO may be paid for in yuan, the newspaper reported.


According to the newspaper, the change in currency was made because of the Western sanctions against Russia.


As a protective measure, Russia decided to avoid making its payments in US dollars, which can be tracked and controlled by the United States government, Kommersant reported.

“Protective measure” meaning that it was the US which managed to Plaxico itself by pushing Russia to transact away from the US Dollar, in the process showing the world it can be done, and slamming the first nail in the petrodollar’s coffin.

This is not surprising to anyone who has been following our forecast of the next steps in the transition from the Petrodollar to the Gas-O-Yuan. Recall from April:

The New New Normal flow of funds:

  1. Gazprom delivering gas to China.
  2. China Gazprom paying in Yuan (convertible into Rubles)
  3. Gazprom funding itself increasingly in Yuan.
  4. Russia buying Chinese goods and services in Yuan (convertible into Rubles)

And all of this with the US banker cartel completely disintermediated courtesy of the glaring absence of the USD in any of the above listed steps, or as some may call it: from the Petrodollar to the Gas-o-yuan (something 40 central banks have already figured out… just not the Fed).

Still confused? Then read “90% Of Gazprom Clients Have “De-Dollarized”, Will Transact In Euro & Renminbi” for just how Gazprom set the stage for the day it finally would push the button to skip the dollar entirely. Which it just did.

In conclusion we will merely say what we have said previously, and it touches on what will be the most remarkable aspect of Obama’s legacy, because while the hypocrite “progressive” president who even his own people have accused of being a “brown-faced Clinton” after selling out to Wall Street and totally  wrecking US foreign policy abroad, is already the worst president in a century of US history according to public polls, the fitting epitaph will come when the president’s policies put an end to dollar hegemony and end the reserve currency status of the dollar once and for all, thereby starting the rapid, and uncontrolled, collapse of the US empire. To wit:

In retrospect it will be very fitting that the crowning legacy of Obama’s disastrous reign, both domestically and certainly internationally, will be to force the world’s key ascendent superpowers (we certainly don’t envision broke, insolvent Europe among them) to drop the Petrodollar and end the reserve status of the US currency.

As of this moment, both Russia and China have shown not on that it can be done, but it is done. Expect everyone to jump onboard the new superpower axis bandwagon soon enough.


17 Comments on "Gazprom Begins Accepting Payment For Oil In Ruble, Yuan"

  1. Plantagenet on Wed, 27th Aug 2014 3:58 pm 

    Its another sign we are returning to a new cold war—for decades the west traded in dollars and other convertible currencies, while the Russia-China axis traded in non-convertible currencies.

  2. Norm on Wed, 27th Aug 2014 6:48 pm 

    Its big news. After forty years of all the red white and blue locals chipping away at the main beam of the USA, finally the main beam starts to cave in. It took a lot of idiots a lot of decades, to wreck the USA. But they got ‘er done. Now where to move to? France? Australia?

  3. Makati1 on Wed, 27th Aug 2014 7:42 pm 

    Been watching this story unfold and being told by the naive that it cannot be done. At least, not in the near future. Also the same naive think it will not change anything in the USSA. Oh well, reality is a bitch…

    BTW: Did you catch the FACT that 40 central banks are on board this new trade venue? That the 40 central banks cover over half of the world’s 7 billion people and almost half of the worlds trade. And, the list is growing almost daily.

  4. bobinget on Wed, 27th Aug 2014 7:52 pm 

    Oil/gold will still be dollar valued.

  5. jjhman on Wed, 27th Aug 2014 7:58 pm 

    So I’m reading along thinking this article is about Russia and China, petrodollars and rubles……….but wait, no, its another psuedo news article the main point of which is a mindless screed about the president.

    Get a life.

  6. Northwest Resident on Wed, 27th Aug 2014 9:27 pm 

    Europe, Russia, China — they all should be doing business together in their own currencies. They’re all on the same continent together, and they can’t count on the dollar or the American military being around for a lot longer. When we start seeing some major stepdowns toward global economic collapse, they’ll all be much better off if they have already weaned themselves from American security and financial guarantees, in fact those guarantees won’t be there much longer. European, Russian and Chinese leaders know this. Observe events today within the context of Europe, Russia and China weaning themselves off American security support and financial/monetary systems as they also strive to create working relationships among themselves for the future we all know is coming — with little or no American involvement. Dropping the dollar is just part of the plan, or so it seems to me.

  7. Richard Ralph Roehl on Thu, 28th Aug 2014 1:49 am 

    Behold the denouement of the petro-dollar.

    The Amerikan corn-syrup sheeple in capitalist-fascist Amerika should prepare for radical and fundamental changes to their lifestyle. Rome is burning.

  8. Norm on Thu, 28th Aug 2014 3:13 am 

    Oh ya. They will be like the Russian peasants, the Babushkas, forced to live on $2 a day. Except the soon-to-be American surfs, don’t know how to gather firewood, bake a loaf of bread, grow some tomatoes, nor can some homemade jam.

    They only know how to collect food stamps, wage war & hatred, guzzle cans of monster drinks, and throw aluminum cans into the roadways. Also they denigrate others who aren’t so senseless, but they certainly don’t know how to live a responsible existence. When the flow of cheap Chinese junk from Wal-Mart slows down, and their food-stamp money don’t go so far as it used to, lookout below !!

  9. Norm on Thu, 28th Aug 2014 3:13 am 

    What a cool-phrase, ‘The Amerikan Corn Syrup Sheeple’.

  10. Davy on Thu, 28th Aug 2014 6:38 am 

    Here we go again the name calling for the American people. Hey, Rich, man up buddy and tell me which sorry ass country you lay your head at night. “OR” are you going to be a puss like Jim and cut down America but not have the balls to mention what country are from.

  11. Davy on Thu, 28th Aug 2014 6:44 am 

    The dollar diminishment has begun. This is natural process with a complex global interconnected system at limits of growth facing diminishing returns. It is sound economics for all these countries to start doing more bilateral trade in their local currencies. The conditions of world trade will allow these larger economies to make increasing use of local currencies in trade amongst other large trading partners they trade with. There will be no replacement to the dollar only many ad hoc arrangements that will signal the compression of BAU in randomness and decay. Of course some winners and losers but overall we will all have less with less. Yet, the stupid talk of the US suffering from this and the rest of the global system doing just fine is lame and low IQ. The global system is interconnected with consequences to large actions and unintended consequences. The US economy is around 19% of the world economy so don’t expect the dollar to be dropped altogether. As for the effects to the US economy this action will compress the ability of the DC mafia and their FED friends in their idiotic militaristic economic policies that have impacted the world in trade distorting ways. These DC/Wall Street/FED policies have impoverished main street America also. These parasitic blood suckers deserve less power. Global BAU is near an inflection that will spell the end of growth and globalism. It is not yet quantifiable in the degree, duration, and timing of this paradigm contraction. Although it appears we have tipped over the edge. Many of the effects will be dysfunctional and random. A descent paradigm is a different animal from a growth paradigm. I feel the US is positioned just fine to go isolationist and withdrawal to within its borders. We have the necessary resources. We have too many people in the wrong places but that will have to work itself out in painful and ugly ways but it is doable. I would be especially worried being Asian and European. Asia has ½ the world population packed into a very small area that will not be able to feed itself. Europe has un-defendable borders that will be attacked by desperate from the south and east with a maxed carrying capacity currently. The dollar diminishment is an example of the beginning of the end for BAU and it will be a good thing for main street America and a bad thing for the DC mafia and their FED friends. The rest of the world will benefit albeit not much when one considers the decline ahead despite whatever currency arrangements result. IOW this is a nonevent compared to the end of BAU

  12. Makati1 on Thu, 28th Aug 2014 7:29 am 

    Perhaps the narrow thinking is only in the USSA. That any other countries could just possibly make out better than the West by abandoning the Charmin dollar is beyond their ‘exceptional’ imagination. That all other countries have to fail because the USSA goes down the toilet, is their religion. That the USSA is now getting the treatment that the USSA has been forcing on the rest of the world, is only fair and just. As I said, reality is a bitch… LMAO

  13. JuanP on Thu, 28th Aug 2014 9:16 am 

    There’s no need to get excited over this minor step on the long stairs of human collapse. We have all been waiting for this day to arrive for a while and this is no surprise.
    Everything that is global in scale will collapse to regional and local scales. The use of the Dollar as an international trade and reserve currency will not be an exception to this rule, but it will not happen overnight, it has been a gradual process that has been playing quietly in the background for over a decade now. The American people will survive.
    Don’t waste your time or resources because time is running short.

  14. MKohnen on Thu, 28th Aug 2014 10:41 am 


    Could not agree more.


    Absolutely right. The collapse of the petrodollar isn’t a sign of the strength of some new system, it’s an indication of the end of an old system. There will be plenty of pain for all, but also new beginnings for all.

  15. baptised on Thu, 28th Aug 2014 12:56 pm 

    IMHO I see it as. We could not keep going the way we were going! The rich getting richer, the MIC getting bigger, and the losers&illegals getting more for having more children.

  16. penury on Thu, 28th Aug 2014 3:43 pm 

    Just remember what happened to Saddam and Libya, then re-read the news from yesterday about the sales of gas and oil in local currencies and you will (maybe) begin to understand why we (US)feel this is when we must go to war (again).

  17. Makati1 on Thu, 28th Aug 2014 7:06 pm 

    penury, the USSA has been trying to get a war going for a few years now. They are being frustrated because not all of their plans are working out the way they expected. But a serious false flag is coming to the US to put the fear into the sheeple again. Only this time it will be Russia or China that is blamed.

    Obama changed the military’s use of nukes to first strike instead of retaliation and have already used nuclear munitions in Iraq. And Russia has a “use em’ or lose em'” nuclear strategy in place if they “suspect” that they are being attacked. Does that say “Peace”? The war in Europe would be over in less than an hour and maybe a few hours in the USSA. There will be no winners.

    I wonder what Nuclear Winter would be like in the Philippines? Maybe I will get to experience it. After all, the Ps will not be a target. No threat here.

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