China to Pay for Russian Gas in US Dollars – Russian Energy Minister

Russian Energy Minister Alexander NovakRia Novosti

ST. PETERSBURG, May 23 (RIA Novosti) – Payments under a $400 billion contract signed Wednesday between Russian gas giant Gazprom and China’s CNPC will be made in US dollars, Russian Energy Minister Alexander Novak said on the sidelines of the St. Petersburg International Economic Forum on Friday.

The Russian Finance Ministry is currently working on the issue of transferring accounts of export goods into rubles because of Western sanctions against Russia over the situation in Ukraine and Crimea.  

Many of Russia’s partners, including China, use the ruble in trade, but most export contracts are fulfilled in dollars.

The 30-year contract provides for the sale of Russian gas to China at a volume of 38 billion cubic meters per year with delivery via an eastern pipeline. According to Gazprom CEO Alexei Miller, the value of the entire contract is $400 billion, though the contract price for gas has not been revealed yet. Experts say it could exceed analyst estimates of $350 per thousand cubic meters

Under the deal, Russia’s overall investment on delivering gas to China is $55 billion and China’s investment is estimated at around $22 billion.

Earlier Friday, Gazprom reached a preliminary agreement with China on the advance payment of $25 billion for the gas deliveries under the new contract.–Russian-Energy.html

6 thoughts on “China to Pay for Russian Gas in US Dollars – Russian Energy Minister

  1. Some big wig in the illuminatti made a phone call to Putin or had a sit down and explained very frankly what the consequences would be if this energy deal was paid for in anything but cash dollars. My oh my how Russia caved. I can just imagine what the threat must of been. Something horrible I’m sure.

    1. Sounds like that’s the way it must have been. Last I heard both China and Russia were moving into the future together without the US dollar.
      . . .

  2. My Fellow Patriots:

    IF,.. Putin gave in and agreed to accept payment using the fraud called, Federal Reserve Notes, this would be an indication that he is in fact part of the Global Cabal,.. aka,.. NWO.

    The other possibility is, that China has asked Russia to accept payment of Federal Reserve Notes so as to burn down its inventory of Reserve Currnency, and provide China with a channel to dump US Treasuries redemptions.

    This of course would then straddle Russia with the necessity of desposing of the US Dollars,… but perhaps we have already seen their strateegy in doing this, which is converting it immediatly into Gold, as Russia just did with the purchase of 1.2 Billion dollars worth.

    Problem: China can NOT dump all its Treasury AND Currency Reserves in an expeditious manner due to the size of their holdings of each, so this would be a hugh help to China to help funnel the proceeds out of their economy without destroying the value of their holdings to quickly.

    Just a thought on what is really behind this capitualation on China and Russia’s actions.

    JD – US Marines – This is a little baffling indeed, unless Putin really is nothinng more than a NWO player,… OR,… Russia is really just helping it’s new strategic ally out by channel its US Treasury and currency holdings.

  3. Sounds like the elite need more time to collapse the system and have made a deal with Putin (aka controlled opposition) to hold off on the collapse. Otherwise, why the delay? Just drop the ball already. What are they waiting for?

    Oh that’s right, the American people are still armed to the teeth and the Amnesty bill allowing their domestic army to be legal hasn’t been approved yet.

    JD, with all due respect, I still can’t believe you’re still not sure whether Putin is controlled opposition or not. The writing is practically on the wall from what I see.

  4. it’s more likely that the chinese insisted on $ payment – probably at below mark value.

    remember, the chinese hold a huge amount of $ and are trying to get rid of them as fast as possible.
    that’s why they are buying land, and businesses in the u.s. and Europe as fast as they can.

    it would be very interesting to find out if the deal is 1-1 or if the chinese are paying $2 for every $ of fuel.

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