It's On: Gazprom Prepares "Symbolic" Bond Issue In Chinese Yuan

Tyler Durden's picture

Curious what the fate of the petrodollar is? Look no farther than this Interfax update blasted moments ago by Bloomberg: "Gazprom Considers 'Symbolic' Yuan Bond Issue, Interfax Says."

Bloomberg adds that the gas giant is considering proposals from potential organizers to market bonds in yuan, Interfax reports, citing people with knowledge of the matter.

  • Gazprom unlikely be able to gain more than $300m due to mkt volume, newswire reports
  • No mandates, deal timeline yet
  • Issue may add new investors, become a “topical” public relations act amid tensions with U.S., EU

Well, yes. It's called "symbolic" for a reason. More importantly, it is a symbol of what happens when one can "create" money de novo without the presence of the world's increasingly defunct reserve currency, either secured by gas or by future cash flows, i.e., unsecured.

Confused? Read:

... and the New New Normal flow of funds will suddenly become clear -

  1. Gazprom delivering gas to China.
  2. China Gazprom paying in Yuan (convertible into Rubles)
  3. Gazprom funding itself increasingly in Yuan.
  4. Russia buying Chinese goods and services in Yuan (convertible into Rubles)

And all of this with the US banker cartel completely disintermediated courtesy of the glaring absence of the USD in any of the above listed steps, or as some may call it: from the Petrodollar to the Gas-o-yuan (something 40 central banks have already figured out... just not the Fed).

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knukles's picture

Ain't nothing just symbolic about this, folks!

Next stop, cut gas via "The" Ukraine to Europe by 75%, take all past dues and new purchases in either Rubles or Gold

hungarianboy's picture


Does the US send more warships now to the black sea?

I see it this way, Russia bought US debt, US sends warships to the Russian border. This is how the US thanks the foreigners.

Not surprising petrodollar is comming under pressure.

Two-bits's picture

cue the sinking of the Donald Cook.

Ramming speed.

tbd108's picture

Let's hope not. Honest sailors sent into a nasty situation by a bunch of rats. Pray for their safe return home.


eatthebanksters's picture

For sure the Obama administration and his NSA and CIA saw this coming and for sure they know how to eal with it.  For sure, right?

strannick's picture

Breaking news like this is why ZeroHedge is the go-to financial news source. Up yours Bloomberg and Wall St. Journal, you WhiteHouse sponsored sonza bitchez!

knukles's picture

Ah, not to worry.  Kerry'll just squeeze another Catchup package on the sand

McMolotov's picture

We've been doing everything over twatter and facefuck, so at some point, I expect Obama to get serious and upload a youtube video of himself wearing the mom jeans / rolled-up sleeves / bicycle helmet combo, saying "let me be clear" and various other kinds of tough talk. He can draw ketchup lines in the sand like Bugs Bunny, and Kerry can stand off to the side making lightsaber noises like a retarded child.

This is now what passes for American diplomacy.

Like I said the other day, history is full of emperors who went insane as their empires crumbled around them. We are witnessing the end of the American Empire, and it's only going to get weirder from here on out.

maskone909's picture


let me add the fanny pack and those shoes with velcro straps

Latina Lover's picture

Symbolic, HaHaHa! This is what we call Russian humor.  You do not symbolise Russia, Russia symbolises you! 

This is a big fuck you to the USSA and the banksters that control it. 

JoeSexPack's picture

US military.... you are errand boys, sent by grocery clerks, to collect a bill.


Rise above & remember your oath to the Constitution.

dow jones 20000's picture

anyone who mixes in an Apocalypse Now reference is in my god books.

the horror..... the horror........ 

BlindMonkey's picture

OT: What happened to the vaginal sea creature avatar? It was rather disgusting but erotic in a gooey sea-critter kind of a way.

furgheddubouddit's picture

Btw....the US dollar is already getting absolutely trashed across the board right now.

And this before the unwinding of the dollar hegemony has truly even begun.

It looks like the markets have also figured out that all this talk from the FED about raising interest rates is a complete and utter JOKE!

With the US literally buried under a mountain of debt, rates aren't going to be raised in 2015....or 16....or 17.....or ...EVER!

It's just an exact replay of the Japan saga; interest rates locked at 0% and eternal money printing in order to prevent complete economic collapse.

Game over.

HardlyZero's picture

primed for 7 years...brutal pure fiat unwind.


Looks like TODAY CNBC decided to listen to Dr. Marc Faber.

Reality is a bitch.

jerry_theking_lawler's picture

Except Japan had us to pin itself up against for stability. Once the BRICs have their way with us (coming sooner than later looks like now)...all the things you said above will happen really fast for us....

SWRichmond's picture

Yup...can't skim if they don't play in your pond.

Raging Debate's picture

McMolotov - This below has got be the funniest fucking comment here I ever read:

"We've been doing everything over twatter and facefuck, so at some point, I expect Obama to get serious and upload a youtube video of himself wearing the mom jeans / rolled-up sleeves / bicycle helmet combo, saying "let me be clear" and various other kinds of tough talk. He can draw ketchup lines in the sand like Bugs Bunny, and Kerry can stand off to the side making lightsaber noises like a retarded child."

My friends (that means people of all nations). Don't be misled about being encouraged to hate east or west. The top leadership of this world has made large gambles at the possible expense of your lives. They don't want dead customers, but if you live by the sword, you will die by the sword in what is unfolding. Speaking of Star Wars, do not be Batha Fodder for the Kingmakers (IMF and CFR) that can't handle managing east and west simultaneously. Bankers make loans, they don't manage governments outside of merely enriching themselves. Not all of there decisions were bad or evil, the world is a better place for having an east worth investing in even if it came at the expense of my fellow citizens here in America and make no mistake, our parents made an equivalent of $30 and hour with benefits and now makes half as much with no benefits and things now cost twice as much.

Stay neutral and look after one another. The era after this last evolutionary cycle is going to be amazing but it will be very dangerous until 2021 or so. History rythmes. If only one nuke or WMD goes off anywhere it will crash all markets and make commodities fly to the moon. A tiny few will get much richer. This is how these people think. You (of all nationalities) are pawns don't get played!

maskone909's picture

that would be evidence of skilled ocuppational abilities.  i picture him smashing a glass ketchup bottle on his head and muttering something like, "me hungry. frnakenstien want hungry"

furgheddubouddit's picture

FINALLY Russia has figured out it doesn't need those war-mongering hypocrites in the West.

Send your gas to China, get your cheap oil from Iran, get your food from Kazakhstan, get your machinery and electronics from Asia.....and cut Western Europe loose!

Let them slowly rot away under the massive piles of debt they're already buried under.

BlindMonkey's picture

13% flat tax to boot. If they did something about the obscene level of corruption and protected property rights they would have a monster-ass economy.

mkkby's picture

I'm hungry.  How much is that burger in yuan?  Nevermind... same as always in PM.

HardlyZero's picture

25% of Russia's food comes from the farms in someone has to get the oil and resources to fertilize the Ukr fields for harvest.


Its a win-win...and the West doesn't really need the hassle, they will keep their cheap(er) energy for the time being in the EU.

All the Ukr debt will be forgiven by Russia, and the people can 'start over' without the billions in debt.

This approach of obtaining or owning countries was perfected many years ago by the IMF.

However, if someone stirs the nest, Russia will just slow the oil and gas supply Westbound.

SoCalBusted's picture

Partly true.

Since China is holding our debt, we could default and keep the trinkets.

If I owe you $100, that's my problem.  If I owe you $100,000,000 that's your problem.

Odin's picture

Annnd the first big domino tumbles...

Element's picture

Just yesterday Abbot said in China that he wanted to see Sydney become a center for the exchange of the Yuan.

BlindMonkey's picture

And that makes sense why??

UselessEater's picture

Abbot also discussed 'high-level defence exchanges' with Premier Li. How nice.

drendebe10's picture

More intended/unintended consequences from the policies of the divisive arrogant narcissistic lying illegal alien kenyan muslim sociopathic ignoramus fudge packer in chief only interested in its grand imperial lifestyle and $17K dresses for its wookie.... 

BlindMonkey's picture

You need a few hyphens in there to really make your point about Barry.

HardlyZero's picture

This was a great SteelyDan fits here now...great tune, which means something here and now.


I'm not one to look behind I know that times must change
But over there in Barrytown they do things very strange
And though you're not my enemy
I like things like they used to be
And though you'd like some company
I'm standing by myself
Go play with someone else
I can see by what you carry that you come from Barrytown

graneros's picture

I've always like that song.  You're right the lyrics fit well though I doubt Becker and Fagan would agree with your insights. I'm guessing at that but as they are a couple of rich rockers most likely they are Progressives and Obama supporters. If I am wrong my most sincere apology to the boys.

Leaping Lizard's picture

Fagan and Becker never even hinted at politics in their work beyond the local chiefs-of-police locking up the working girls.  They were much too savvy and cynical to waste their time.  Time to listen to their stuff again, Graneros.

eatthebanksters's picture

And holding his pecker in the other...

Grande Tetons's picture

Rat children onboard equals zero. 

chapaev's ghost's picture

Someone asked me yesterday- "Why is American foreign policy so feckless?"

"Because there is no real leadership at the top," I answered. "Compare the two leaders, Putin and Obama.

Putin: What you see is what you get. He really did attend Leningrad State University, and you really can access his records there.

Putin really does hunt, and he really does kill things and eat them.

Putin really does believe in God, and he really does practice Judo.

Putin really was/is married to a real woman, and his children really are his biological offspring.

Putin really is a citizen of Russia, and he really is a patriotic nationalist, and really does believe in Russia.


Obama: Obama lied about his education and all his records are sealed.

Obama doesn't really believe in God, and he doesn't really have any real skills, although he is rumored to be a decent golfer.

Obama is a lying closeted homosexual, with a sham marriage to a transsexual man, and his kids aren't his own biological children, which is ok, except that he pretends that they are his, which is a lie.

Obama is not a citizen of the US, and he hates the nation he leads, and his mission is to destroy America and everything it stands for.

So there you have it- leadership leads mostly by example. Obama can fool Americans, and he can live in his fantasy world domestically, but "out there" the shit is real, and if you're a phony, a pretender, a usurper, and a fraud, the real men will eat you up.


Mr Giggles's picture

A few more US ships and the bosphorus will close, sailors may become walkers, when the food runs out, lets hope it doesnt get that far.

Tom_333's picture

It´s the Bosporus. Nothing to do woth phosphor. At all.

Leaping Lizard's picture

Except that it may be the match that lights a thermonuclear war.

Anusocracy's picture

Honest sailors that are as honest as the enforcers for organized crime.

The elite do appreciate their sacrifices, though.

BlindMonkey's picture

That's why the elites put up so much money for the various and sundry memorials.

Nothing says "sucks to be you" quite like engraved marble.

Anusocracy's picture

Like the Tomb of the Unknown Dupe?

debtor of last resort's picture

They won't come home unless they get paid in rubles.