Russia hits back on the petrodollar

DSAbug

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yep.. they are basically telling Europe to go to hell. If they want their gas, they need to secure transit.
 

pmbug

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Russian President Vladimir Putin is on the verge of realizing a decade-old dream: Russian oil priced in Russia.

The nation’s largest commodity exchange, whose chairman is Putin ally Igor Sechin, is courting international oil traders to join its emerging futures market. The goal is to increase revenue from Urals crude by disconnecting the price-setting mechanism from the world’s most-used Brent oil benchmark. Another aim is to move away from quoting petroleum in U.S. dollars.
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To attract traders, the Bank of Russia is preparing legislative amendments to grant non-Russian firms access to exchange-traded commodities and their derivatives, the financial industry regulator said in an e-mail. The bank will assist Spimex in starting futures to price oil for exports.

Russia’s largest oil companies, including Rosneft OJSC, Lukoil PJSC, and Gazprom Neft PJSC support the new futures and may become market makers, Spimex President Rybnikov said. He declined to name any trading firms outside of Russia, saying that the exchange has been in a dialogue with many market participants.
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Moscow is not alone in its push to change global oil pricing. China, which vies with the U.S. as the world’s biggest crude importer, has spent two decades trying to introduce its own oil futures contact, now expected this year. Iran and Venezuela, members of the Organization of Petroleum Exporting Countries, have called for trading oil in other currencies than U.S. dollars.
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http://www.bloomberg.com/news/artic...dream-realized-as-russia-to-price-its-own-oil
 

rblong2us

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I struggle to keep up with where its all got to .....

Are any oil/gas producers actually selling their product in currencies other than US$ ?

and is there a non SWIFT transaction process that allows the process to NOT involve a conversion to US$ at some point ?


And if this is actually happening, why haven't they been invaded and had their gold stolen ?
 

pmbug

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Are any oil/gas producers actually selling their product in currencies other than US$ ?
Iran for sure (thanks to US sanctions). Rickards claims in his new book that Russia (an oil exporting nation) is (or was) actually buying oil from Iran and then re-exporting it to China.

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and is there a non SWIFT transaction process that allows the process to NOT involve a conversion to US$ at some point ?
Well, they are in the process of building (at least) one. In the meantime, countries are just doing bilateral trade deals and FX swaps.

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And if this is actually happening, why haven't they been invaded and had their gold stolen ?
Most of the major players (Russia, China) have nukes.
 

rblong2us

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What stopped them doing bi lateral trades and FX swaps in the past ?

and why did they not invade Iran ?
Actually this still seems like a pivotal question ........

Something has changed.
 

pmbug

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Russia’s largest oil company Rosneft has set the euro as the default currency for all new exports of crude oil and refined products, as the state-controlled giant looks to switch as many sales as possible from U.S. dollars to euros in order to avoid further U.S. sanctions against it.

As of September, Rosneft is seeking euros as the default option of payment for its crude oil and products, Reuters reported on Thursday, quoting tender documents the Russian firm has published.

“Rosneft has recently adjusted all the new contracts for export supplies to euros,” a trader at a company that regularly procures oil from Rosneft told Reuters, adding that buyers have already been notified of the change.

Rosneft is the biggest oil exporter from Russia, selling around 2.4 million barrels per day (bpd) of oil, according to Reuters estimates.
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https://oilprice.com/Latest-Energy-...-Company-Ditches-Dollar-In-New-Oil-Deals.html
 
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