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Russia’s state-run gas giant Gazprom PJSC said it will shift its contract to supply gas to China to rubles and yuan from euros, as the Kremlin steps up efforts to move trade out of currencies it considers “unfriendly” amid US and European sanctions.
“A transition was made to making payments for Russian gas supplies to China in the national currencies of the countries — the ruble and yuan,” Gazprom said in a statement.
“The new payment mechanism is a mutually beneficial, timely, reliable and practical solution,” Gazprom CEO Alexei Miller said as quoted in the statement following a video conference meeting with the head of China’s oil group CNPC, Dai Houliang. Miller said it will “simplify calculations” and “become an excellent example”.
Miller informed his Chinese counterpart of the “status of work on the project for gas supplies via ‘the eastern route’ — the ‘Power of Siberia’ gas pipeline” which connects the Russian and Chinese gas networks, it added.
The energy giant said gas from the Kovykta field will start flowing through Power of Siberia “before the end of the year”, allowing for the “increase (in) the volume of gas deliveries to China in 2023”.