The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan


The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan (ZeroHedge, Aug 27, 2014):

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.

4 thoughts on “The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan”

  1. Just another nail, not the only one……this work has been going on for four years. China and Russia started the process in November of 2010. Over half the world is in their basket of currencies, the world reserve currency has been undermined by technology……all started by Hugo Chavez with his tiny South American Trade Alliance in Spring of 2010. The organization was so small, it flew under US radar.
    Chavez organized twelve small countries, including Cuba. He introduced the first electronic currency, the Sucre. It allowed member nations to trade with each other using their own currencies, leaving the dollar out. The Sucre translated the value of each currency, making the need for any world reserve currency obsolete.

    Russia and China watched closely, and established a similar program between each other. They went on to recruit better than half the world…….all who hate the US.

    This story has been laundered on the Internet, but I found it when it broke, and followed it. The reason is that I expected it. No nation can go on attacking other countries that have done nothing to deserve it and not get a serious blowback. The best weapon was economic.

    Now, Putin has his BRICS, the latest to join is Switzerland. All solvent countries are joining……they are getting as far from US financial domination as they can. Now, BRICS has established a fund equal to E100 Billion to loan money to smaller nations that no longer want to be under US domination. They are doing exactly what the US used to do, buying their friends.

    Somehow, the US has been put into the hands of evil leaders who are doing everything to destroy it’s economy for all time. It is no longer a nation of law, so nothing is done, no matter how great the crime.

    If Obama attacks Syria, Putin will strike back. US media will try to sell it as Putin’s aggressions, but that is not the truth. It is the opposite. Obama wanted to hit Syria last year regardless Americans didn’t want it. Putin showed up with 10 warships and an aircraft carrier. Obama ran like a rabbit.

    Since then, he has fruitlessly tried to get a coalition and allies to attack Russia. Nobody will join with him. Reason, the truth is out, the US is not only corrupt, it is broke.

    Not paying Germany their gold was the biggest political blunder of this generation. It made it clear the US has nothing but paper currency and bombs. The world is sick of them.

  2. They are strong enough now to go public. This started in November. 2010.
    Russia and China made a trade agreement to trade with each other using their own currencies, leaving the dollar out. This is old news.

    Friend at IU, I have a question. As soon as the EU dumps the dollar, it will collapse. It is no longer a matter of if, it is when. Is there any source where I can find the current statistics on who and what controls the US stock market? At last check, nearly a year ago, it was 85% high frequency, controlled by a few individuals buying and selling huge amounts of securities in less time than it takes to blink an eye. All of it is skim and sell, they keep taking, nothing is coming in. Yet, they keep pumping it, and I am terrified of what is going to happen. No market can go up and up regardless of what is happening in the real economy……..especially when most of the money is going out, not in.
    I wonder if the high frequency trading is higher now than 85%……I bet it is over 90%.
    Is there a way you can help me find out?

  3. On another fool plan of the US… is an article with the idea the US wants to attack Iran (a very rich country, with Russia, China, India++++ as allies, the US has none) and Syria. If the idiots hit Syria, Putin will keep his word. If they hit Iran, they will be destroyed. The endless Iraq war has made the Iranians a very rich nation.

    This tells me the US leaders are beyond delusional……they are idiots.

  4. As one might notice, this is a very important story to me because I see a total shifting of economic power to the east thanks to cowboy politics from the west. The most mindless moves by Obama continue.
    Can anyone tell me how putting sanctions on an entire economy that no longer uses the dollar helps the US or the EU? They tried squeezing the credit card availability……and Putin launched the well established Union credit card from China to cover the problem. Soon, these cards will be used all over Europe, Central and South America, Africa…..maybe even New Zealand…….Putin has followed Hugo Chavez’s model, and expanded it into a world economic system that Chavez could never have imagined.
    They stopped using the dollar in November of 2010…..Russia and China set up an agreement to use their own currencies in their trades with each other, leaving the dollar out. They went on to recruit better than half the world. Now that his power is complete, Putin and China are going public…….and most people ignorant of this truth…….are just learning of it.
    I have been following it since the day Chavez launched his basket of currencies for the South American Trade Alliance using the first electronic currency, the Sucre. The Sucre translated the value of each member nation’s currency, making conversion to the dollar, or any other currency, obsolete.
    This was kept quiet. There were a few stories I followed closely. Now, most have been laundered…….as truth leaves the Internet……thank you, Obama.
    Putin has established a sister economy to the west with a few major differences. Russia, like most member nations, is making money, not going deeper into debt to feed greedy gut war contractors. China (thanks to greedy corporations who wanted 25 years of slave labor to show profit to their investors) has the blueprints for every thing the west has built from computers, semiconductors, autos, power plants, including nuclear, (thanks, GE)jet planes, weapons, aircraft carriers, ……..they have everything the west has……and far more money.
    They are buying the small nations with loans from a huge fund they put together, naming their affiliations BRICS, standing for the major players, Brazil, Russia, India, China and South Africa. All these nations (China might not be so strong, but they have all the necessary technology, so can work their way out of the hole they have dug) are making money, unlike the US and most EU nations.
    It is no longer if, it is when the EU dumps the dollar and embraces BRICS…… is another article on the subject. This is a very important story. If I were deeply in the US stock market, I would endeavor to get out in Swiss money, or other strong currencies……..the dollar will collapse when the EU dumps the dollar…..and that day is coming fast.
    Obama now plans to put more sanctions on Russia, a nation that has not used the dollar in nearly four years. Is he stupid? What is wrong with US leaders? Every move they make only empowers the east, making the west weaker and more absurd all the time.
    Were I not dying, I would be seeking to leave the US. A friend asked me today where I would go. I said the UK for two salient reasons. First, it is farthest from Fukushima, just look at a globe of the world, and the radiation isn’t as strong there. Second, they have a parliamentary system, it has worked for hundreds of years, and regardless of the chaos and the problems, the UK has a remarkable ability to survive. I am sure there are others with suggestions and ideas quite different. My people also come from England, served in the America Revolution……..I rather wish they had stayed in England.
    Setting up a republic with full knowledge of what happened to Rome was incredibly short sighted by the founders of the US. Republics are easily hijacked, and always are. It doesn’t take long………and now, the US is a corporate dictatorship. They have destroyed all small business endeavors, now they eat each other. I only hope they rot in Hell. Why didn’t they set up a parliamentary system? In the UK, they can get rid of the rotten apples. In the US, there is no way to do it…….they are locked into power, and people have no way to get rid of them. The unseen powers behind them are evil beyond any imagination.
    Here is another story from the UK Guardian, short, but to the point.
    It is no longer if, it is when……


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