Posted on 10/19/2009 7:02:39 PM PDT by TaraP
BEIJING, October 14 (RIA Novosti) - Russia is ready to consider using the Russian and Chinese national currencies instead of the dollar in bilateral oil and gas dealings, Prime Minister Vladimir Putin said on Wednesday.
The premier, currently on a visit to Beijing, said a final decision on the issue can only be made after a thorough expert analysis.
"Yesterday, energy companies, in particular Gazprom, raised the question of using the national currency. We are ready to examine the possibility of selling energy resources for rubles, but our Chinese partners need rubles for that. We are also ready to sell for yuans," Putin said.
He stressed that "there should be a balance here."
On Tuesday, Russia and China agreed terms for Russian gas deliveries at a level of up to 70 billion cubic meters a year. China also imports oil from Russia.
The Russian prime minister said the issue would be addressed among others at a meeting of Shanghai Cooperation Organization (SCO) finance ministers, who are to convene before the end of the year in Kazakhstan.
Britain's Independent newspaper reported last Tuesday that Russian officials had held "secret meetings" with Arab states, China and France on ending the use of the U.S. dollar in international oil trade.
The countries are reportedly seeking to switch from the dollar to a basket of currencies including the euro, Japanese yen, Chinese yuan, gold, and a new unified currency of leading Arab oil producing countries.
The Independent said the meetings have been confirmed by Chinese and Arab banking sources.
The trades will be gauged against the market price for oil at the time of the trades which will still be measured in dollars. This is only a token first step if they intend to drop the greenback in the future. I say it’s effect will be minimal to none, but feel free to correct me if I am wrong.
It’s more bravado than anything. Designed to embarass our weak-kneed President.
I’m starting to think the sooner the US debt is closed off the better off we will be in the long run. It is going to be some pain no matter what - but $100 bread is a lot better than $1000 bread. Obama is determined to do the latter to “choas” his way to life dictatorship and usher in Communist utopia.
Both are jokers.
They need to ask some questions such as who created demand? Who created the technology to go and get it? Chinese and Russkies are both importing the technologies. Russkie and chinese crap doest work nor does their understanding. Both are here trying to steal ideas and technology.
Who has the history of success in this field?
American Oilpatch.
Thats what it boils down to.
Both are faux capitalistic, one party run countries whose currencies are minipulated to create trade embalances. The russian rouble is a freakin joke of a currency.
I’m sure the Chinese are just going to love filling thier coffers with that worthless paper.
Realistically, a basket of currencies will be the standard in 5 years or less. For oil-producing countries, it’s the equivalent of a diversified retirement fund portfolio. There have been rumblings about dropping the US “petro dollar” for more than a decade, and discussions really heated up around 2004-2005 when Arab OPEC countries were supremely ticked off over the Iraq War and Hugo Chavez was having fun punking us, and then the rumblings quieted down again. But it’s not all about politics. The US dollar has been in a profound funk for a while, and that hurts the bottom line for non-US oil-producing countries who price their oil in US dollars.
are you for real?
yup.
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