One Of The World’s Largest Oil Companies Just Ditched The Dollar
- One Of The World’s Largest Oil Companies Just Ditched The Dollar
by Tsvetana Paraskova, https://oilprice.com/
Russia’s largest oil company Rosneft has already completed the switch away from the U.S. dollar to euros in its export contracts to minimize risks from potential new U.S. sanctions, Rosneft’s chief executive Igor Sechin said on Thursday.
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Rosneft has already fully switched to euros as the base currency for all its export contracts, and sees big potential in working in euros, Sechin said at the Eurasian Economic Forum in Verona, Italy, on Thursday. According to Rosneft’s top executive, the Chinese yuan could become a much more important global currency in the future, because of Chinese economic growth.
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The share of the U.S. dollar in the global oil and oil products trade is around 90 percent currently, Sechin said but noted that in ten years’ time, due to the Chinese economy, the yuan could raise its share from the current 2 to 5 percent.
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Russia is looking at ways to settle its energy transactions in euros and/or rubles in order to avoid dealing with dollars, Russian Economy Minister Maxim Oreshkin told the Financial Times in an interview earlier this month.
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At the beginning of October, reports emerged that Rosneft 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.
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