Amidst the ongoing discussions with India, China has signed an agreement with Russian gas company Gazprom, under which the transaction of money between the two will not be done in US dollars but in Chinese currency Yuan and Russian currency ruble.
Amidst the discussion of trading in rupee instead of dollar in India and Russia, Russian gas company Gazprom has signed an agreement with China, under which money for gas supply will be transacted in Chinese currency Yuan and Russian ruble instead of US dollar. Will be done. This agreement is also showing the deepening relations between Russia and China, which can obviously be a matter of concern for Western countries.
In fact, Russia, which has waged a war with Ukraine, is already facing economic sanctions from many countries including America regarding the war. In such a situation, both China and Russia will be stronger if they do business together in their currency. India is also preparing to do business with Russia in its currency, but the matter has not been made yet. Russia said it plans to trade in local currency with all friendly countries. India has increased oil exports from Russia in the last few months, but the system of trading in ruble-rupee has not yet started.
Gazprom CEO meeting with CNPC chief
Alexey Miller, CEO of Russian company Gazprom, made a statement after a meeting over video conferencing with China Oil Group CNPC Chief Dai Huling, saying that the new payment method would benefit both countries. Miller further said that the new payment method will also simplify calculations and will set a great example for other companies as well.
Miller, the CEO of Gazprom, gave the Chief of China Oil Group CNPC an update on the work of his project during the meeting. After the completion of this project, gas will be supplied from Russia to China through the Eastern Route. After which the Russian and Chinese gas networks will be connected.
When will the ruble and yuan start trading
However, Gazprom did not provide further details about the project, nor was it told when they would start their payment transactions in rubles and yuan instead of dollars.
According to reports, Russia, which is facing economic sanctions from many countries, needs this change because it wants to reduce its dependence on the US dollar, euro or other currencies. For this reason, Russia has been increasing its economic ties with other non-Western countries including China for some time.