ON NOTICE: Over 40% Of Russia’s Oil Exports To Switch Payment Currency From Dollars To Euros
- ON NOTICE: Over 40% Of Russia’s Oil Exports To Switch Payment Currency From Dollars To Euros
Is this month’s “all new tenders for export oil products supplies will have the euro as the payment currency” a game changer?
There has been talk of de-dollarization for some time, but de-dollarization is now picking-up speed by the month. Earlier this month of August, 2019, buyers were notified about switching from dollars to euros for payment of Rosneft oil contracts. From Reuters:
MOSCOW (Reuters) – Russia’s Rosneft (ROSN.MM), one of the world’s top oil producers and exporters, has notified customers that future tender contracts for oil products will be denominated in euros not dollars, five trading sources told Reuters.
Why is this being done? As one could imagine, the US Treasury Department’s weaponization of the US dollar through US sanctions plays a large role in the change of payment currencies from dollars to euros.
In fact, searching the sanctions list at the Office of Foreign Assets Control under the US Department of Treasury returns 500+ results when searching Russia, and several results when searching specifically for Rosneft. More on the main reason for the switch, from Reuters: