Petrodollar Under Threat As Russia And Iran Sign Historic 500,000 Barrel A Day Oil Deal

GoldCore's picture

Russia Delivers Blow To Petrodollar In Historic $20 Billion Iran Oil Deal

Russia signed a historic $20 billion oil deal with Iran to bypass both western sanctions and the dollar based western monetary system yesterday.

Putin Russia Gold Bar.png
President Putin Admire Gold Bar (London Gold Delivery Bar)

Currency wars are set to escalate as the petro dollar’s decline continues.  

Russian Energy Minister Alexander Novak and his Iranian counterpart Bijan Zanganeh signed a five-year memorandum of understanding in Moscow, which included cooperation in the oil sector.

"Based on Iran's proposal, we will participate in arranging shipments of crude oil, including to the Russian market," Novak was quoted as saying.

The five year accord will see Russia help Iran “organise oil sales” as well as “cooperate in the oil-gas industry, construction of power plants, grids, supply of machinery, consumer goods and agriculture products”, according to a statement by the Energy Ministry in Moscow.

The deal could see Russia buying 500,000 barrels of Iranian oil a day, the Moscow-based Kommersant newspaper has previously reported. Under the proposed deal Russia would buy up to 500,000 barrels a day or a third of Iranian oil exports in exchange for Russian equipment and goods.

The Russian government withdrew the statement regarding the deal last night, but said it would issue a new statement today.

In January, Russia said that they were negotiating an oil-for-goods swap worth $1.5 billion a month that would enable Iran to lift oil exports substantially to Russia, undermining Western sanctions.

Yesterday, the Russian President told regional leaders that “the political tools of economic pressure are unacceptable and run counter to all norms and rules.” He  said in response to western sanctions he had given orders to boost domestic manufacturers at the expense of non-Russian ones.

The White House has previously said that reports of talks between Russia and Iran were a matter of "serious concern".

Reserve Currencies In History - Dollar's Demise Continues

"If the reports are true, such a deal would raise serious concerns as it would be inconsistent with the terms of the agreement with Iran," Caitlin Hayden, spokeswoman for the White House National Security Council, said in January.

U.S. and European Union sanctions against Russia threaten to hasten a move away from the petro dollar that’s been slowly occurring since the global financial crisis.

See important guide to Currency Wars here Currency Wars: Bye, Bye Petrodollar - Buy, Buy Gold

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Kina's picture

The problem with the US is that it has only one strategy to attain its goals, intimidation.

Threat of force and sanctions is all the US knows, it is the only tool in its box, no matter the problem.

You are either with them or against them. You are either fighting as their proxy-puppet or their enemy.


70 years of brainless stupidity, living on an overdraft. And the only way to survive is keep having that overdraft extended. Relying on them owing Creditors so much that they will keep extending credit rather than wind up the US for what they can get.  But when there are so many of these USD-IOUs out there.......and it is clear the business USA cannot generate enough income to pay the bills let alone reduce debt........the next step is for Creditors to bite the bullet, take the hit, so they can start again.  IF you are get out the door first....but when others see you heading for the doors....the floor collapses...

AdvancingTime's picture

 Too many people it appears a struggle is occurring to unseat America as the worlds most dominate nation. For many proud Americans who see the world from the unenlightened and possibly undefendable position of the United States having a right to be in control it is both threatening and frustrating to see control slip away.

It is threatening to think the country might quickly fall to the position of a second rate power mired in debt with many of the options we have come to see as our right suddenly ripped away. It is frustrating that in many ways the country has become its own worse enemy guilty of political inaction and squandering its power through a series of bad choices and missteps. More on this shift in power and our best response in the article below.

medium giraffe's picture

Thought experiment:

Do you need biomass to create those long chain hydrocarbons that give oil such enormous utility, or might it be a geological process that begins somewhere deep in the mantle and results in huge quantities of the stuff being produced at a steady rate?

How might your perspective on current events change if the latter were true?


TheFourthStooge-ing's picture


Do you need biomass to create those long chain hydrocarbons that give oil such enormous utility, or might it be a geological process that begins somewhere deep in the mantle and results in huge quantities of the stuff being produced at a steady rate?

While I believe that the abiotic oil theory is at least as plausible as the magic gremlins milking oil from unicorns theory, it's not even worth arguing over because it doesn't matter. The only thing that matters is flow rate.

How might your perspective on current events change if the latter were true?

Not one bit. An oil well with an infinite supply which could only be extracted at the flow rate of a garden hose would do nothing to mitigate the declining production of the biggest oil fields.

medium giraffe's picture

So the common theme in either case is the technological barrier to greater extraction, processing, distribution rather than the much touted scarcity.

If this barrier was to be overcome, would we continue to be drip-fed so that profits and global economic control could be maintained, or would we suddenly find ourselves in a low cost energy driven economic boom whilst margins and economic-political leverage are erroded?

SmallerGovNow2's picture

I believe it IS a geological process.  But there still is a peak at which ever increasing consumption is not possible.  Anyone who thinks the millions of barrels pumped out EVERY SINGLE day are decomposed dino's shit is delusional...

jughead's picture

What is this "thought" thingie that you speak of, gringo?

Bemused Observer's picture

That sounds like an oil-industry wet-dream. Giving Exxon-Mobil a woody...

medium giraffe's picture

Let's suppose that such an organisation might be able to afford the best and brightest in the field of geology, and therefore already be privvy to such knowledge. 

How would that alter the picture?

(I know, that would be as crazy as finding abiotic methane on Titan, right?)

kanoli's picture

Hydridic theory completely changes the game.

basho's picture

ussa behind the curve --again.

don't you folks ever get anything right.

it's just going to get better all the time.

oil and now food.

Obamanism's picture

Why does Russia need oil from Iran? Russia exports oil. "Iranian oil exports in exchange for Russian equipment and goods" I wonder if any of the Equipment and Goods are non-civilian based. Ak47s used as door stops, 50cal bullets and bandoliers as jewelry and fashion belts, BUK missile carriers as snow ploughs etc etc etc....

laomei's picture

Iran can't build refineries because Israel keeps blowing them up.  Russia has access to markets Iran doesn't due to bullshit sanctions (because israel).  Iran can definitely use equipment and other shit Russia either makes or can swap for.  International barter is far better than deals for cash... cash just adds complexity and parasitic middlemen and in the end they end up with something that once again has to be traded for what they actually want... and also, you get to skip over any issues with cash restrictions on Iran. Win win shit right there.

alexcojones's picture

Oh wow, painful facts get downvoted.

18.89 million barrels.

My mistake

alexcojones's picture

500,000 barrels. Drop in the bucket.

How much does the US burn each day?

@ 20 Million  . . . barrels EACH day


stant's picture

Putin ordered 16 Boeing liners puts a small down payment. Then kills the deal when Obama sanctions him. More popcorn please

Freddie's picture

Who would want anything Boeing?  All the modern airliners can be taken over by ground control including the 777.  Only Lufthansa can buy the non-NWO remote control versions.  

The Russian stuff keeps improving while USA stuff like the insanely expensive and insanely bad F-35 get worse.

10mm's picture

War. But please parent's, don't send your loved ones. Besides, we have fresh meat pouring over our boarder to do the dirty work.

Freddie's picture

THe US military/banksters/elites have been killing off American young men for nothing since at least The Civil War.

lunaticfringe's picture

True. End War. Make military service mandatory for all ivy league students.

lasvegaspersona's picture

The world wants to trade. They want more than just one country's paper promises (US treasuries) in return for real goods and oil. The world does not want the USA or any competitor to be able to dictate with whom they may trade. They want balanced trade, at the end of the day there must be settlement. Giving a nation mere paper has been tolerated for too long. The world is figuring other ways to carry out trade. They have put in place currency swaps that allow 2 currency zones to do trade with each other and no dollars involved.

Last October China and the Europeans made such an arrangement. China now has swaps or similar cooperative deals with...well just about every trading partner except the USA. In addition to China Russia and India did one the Friday before last.

There really is not much more that needs to be decided or put in place before the world can actually stop using dollars. BRICS countries make up half the worlds people. The fact that they are not half the worlds dollar movement will become irrelevant when it is the movement of goods and not the mere dollar value placed upon those goods that counts.

Saudi Arabia is the sole entity that really counts that does not seem to have made a commitment to 'de-dollarize.' If they make formal agreements to accept any other currency or if they begin currency swaps...well I'd get some gold bullion before that happens.

doctor10's picture

You can trade in any currency. The ability to easily do so is merely an iphone app away from us.


Just think-based upon GPS location, the commodity you're buying, and plans for transportation-an app could give you the best currency at that moment with which to accomplish the deal.

fukidontknow's picture

Feel the isolation burn Putin.

besnook's picture

the israelification of usa foreign policy is working out as well as it does for israel. when the history is written by future phd candidates the pnac foreign policy will revealed to be the stupidest strategy the world has ever known. bush senior called them the crazies in the basement. clinton, shrub and obambam will be given the responsibility for accellerating the end the best and greatest empire the world has ever known for letting them out of the basement. the people who beat them back into the basement should be considered american heroes. where are they? no where in sight. the usa is doomed if the response is kinetic action. fn idiots. stock up on spam(it last forever, even after the can is opened) and pms and lead.

medium giraffe's picture

"best and greatest empire"

This made me throw up in my mouth a little.  Empires enslave, subjugate, control, steal and murder (and in some cases, well just one so far, drop nuclear bombs on civilian populations).  That's just the way they work - no one would be very interested in joining your empire if you were going door to door with a registration form, would they?

The rest of the stuff you said I agreed with entirely.

logicalman's picture

Good to see a counterforce to the arrogant US government, but as an anarchist, I can hardly be in favour of any decision made by a criminal government (they all are, by the way) whoever is spokesperson.

rainingFrogs's picture

"Under the proposed deal Russia would buy up to 500,000 barrels a day or a third of Iranian oil exports in exchange for Russian equipment and goods."

Sweet deal for Russian manufacturers, essentially bartering oil for Russian produced goods. Likely a bunch of new weaponry. Nice juice for the Russian economy, building up its manufacturing base. Russia sells the oil to the Europeans for anything other than the US$. What's not to like.

Sanctions, smanctions. As the US seeths and has a hissy fit, Putin is cutting deals outside of the US$ system. All Putin has to do is go all the countries that are on the US naughty list and cut a trade deal with them. Let's see, umm, US puppets = New Zealand, Australia, Canada, UK on one side, and everyone else on the other. Lookin' good.

besnook's picture

with china and india and the rest of the brics on the same team there is no need for a nation that produces nothing. crippling the usa military is as easy as stopping the supply of critical parts the usa does not make anymore.

Ocean22's picture

The collapse iof the USA has been planned. Engineered. No country could be this stupid. It has to be engineered. Agenda 21. Chemtrails. GMO's. Flouride. Vaccines. All part of the plan. Criminals in charge of the big picture.

basho's picture

yeah, it's nobody's fault. they did it to us. LMAO

besnook's picture

history is filled with stupid leaders taking their own country down.

Omen IV's picture

Too many other solutions for them to be on this course since 2000 unless all planned - they have wiped out most of the us population - very soon after the election the final hammer

knukles's picture

Exactly.  Every single one of those actions.  As well as all domestic and foreign policies to overwhelm the system, Cloward-Piven at work.


                             "Help!  I've fallen and can't get up"
                                               -Lady Liberty

Radical Marijuana's picture

Knuckles, it is far, far worse than merely the Cloward-Piven strategy at play, as outlined in my comments here:

Is The Cloward-Piven Strategy Being Used To Destroy America?

Furthermore, the deeper threats to the Petrodollar are enough to possibly provoke the criminal insanities of world war going out of control. Every one of these steps (such as mentioned in this article above) towards challenging the supremacy of the currently dominate Anglo-American (Zionist) Empire seriously risks the trajectory of Neolithic Civilization reaching its Peak Insanity point. Of course, that is going to happen anyway, because these things must play through ... The world's entrenched established systems are the result of historical selection pressures developing civilizations to be based on the maximum possible deceits and frauds, in which context there is barely anything more than controlled opposition groups who are pretending to be against that.


Meanwhile, I am not aware of anything whatsoever that can provide a practical resolution of that deeper problem, that human societies naturally ended up being controlled by those who were the best at being dishonest, and backing that up with violence. Conflicts between the Anglo-American (Zionist) Empire and their rivals are basically conflicts between different systems of runaway organized lies operating robberies, which are ALL OUT OF CONTROL, because they were made and maintained to be "controlled" by lies backed by violence.

The collapse of the Petrodollar system threatens to reveal the overall tragic trajectory of the history of the industrial revolution developing Neolithic styles of civilization towards their climax of Peak Insanities, along with Peak Everthing Else. The Petrodollar system ended up enabling the subsidized construction of systems of globalized electronic frauds, backed by the threat of the force of atomic bombs. Technologies which were trillions of times more powerful and capable have blasted social pyramid systems into exponential explosions ... which we were inside, riding upon, at their relatively slow beginnings. However, the Petrodollar systems were always the Enforced Frauds which were the mainstay of the history of the industrial revolution, which has absolutely no coherent theory which understands any of that, which are significantly present in the public spaces today, BECAUSE EVERYTHING IS BASED ON THE BIGGEST BULLIES' BULLSHIT.

Conflicts between the Anglo-American (Zionist) Empire and their emerging rivals are the result of runaway developments of things which were done with overall attitudes of criminal negligence, rapidly becoming criminal insanities, because everything that has been happening was due to one short-term increment after another of the social successes of deceits backed by destruction, or frauds backed by force. The rise and fall of the Petrodollar is far, far worse than merely any superfiicial view of the rise and fall of the American society, as the greatest flourishing of that kind of social pyramd system, which was transplanted onto a fresh continent. We are now looking at an entire planet which has been raped by apes with atomic bombs, which power enabled them to promote their bullshit, such as the PetroDollar, etc. ... However, there are NONE of their alternatives which are not merely lesser versions of regional examples of the same sort of biggest bullies' bullshit systems, spinning out of control, since EVERYTHING THAT HUMAN BEINGS HAVE ENDED UP DOING WITH THE POWER OF SCIENCE AND TECHNOLOGY HAS BEEN PRIMARILY TO BACK UP LIES WITH VIOLENCE, AS THE MAIN WAYS THAT CIVILIZATION WAS CONTROLLED TO BEHAVE IN WAYS WHICH ENABLED ATTITUDES OF THE MAXIMUM POSSIBLE EVIL DELIBERATE IGNORANCE.

There is nothing present in any of the alternatives to the Petrodollar that I am aware of which are not merely more of the same old kinds of human insanities, approaching its Peak Insanity Consequences. I can not imagine how there could be any better resolutions to those problems, due to profound paradoxes that there are no practical ways to prevent the short-term successes of enforced frauds from continuing to dominate civilization, everywhere, quite thoroughly, which results in the Anglo-American (Zionist) Empire, and ALL of their rivals, being collectively insane, and headed towards Peak Insanities together!

Paveway IV's picture

Radical Marijuana - Your observations are not that much different than the ones people in Europe moaned about 600 years ago. All doom and gloom because the one psychopath to rule them all - the Catholic church - could not be exposed for what it had become. They had all the power, money, land, ebola serum, etc. and usurped anything and everything to consolidate their power and influence. There was no frickin' hope - none. They were too big to defeated and too big to fail. 

Then that clever German dude, a Catholic himself, came up with a moveable type printing press.

Society was able to begin fighting off its disease of out-of-control psychopathy. Society's immune system is triggered by communication and education.

Now we have the situation you have so clearly described, but it's just a retreaded version of one psychopath to rule them all: Western government hegemony with its twin charades of lawmaking and voting. They have all the power, money, land, ebola serum, etc. and usurp anything and everything to consolidate their power and influence. There is no frickin' hope - none. They are too big to defeated and too big to fail.

Lucky for us, that clever Al Gore invented the internet.

It took the printing press and the resulting mass comminication and spread of education about a hundred years to monkey-hammer the biggest psychopath in the room. It took people a while to wake the fuck up.

The internet has only been widely accessable and useful for spreading knowledge for what? Five years, maybe ten, tops? Society is barely awake, and has a massive hangover. Worse yet, they're in someone else's bed in an apartment they don't recognize, their watch and cellphone are gone and their wallet is completely empty. 

As long as there isn't blood streaming out of every orifice of society's body, there's still hope. But please - wait until they have a fistful of asprin and their second coffee before the eulogy and burial. 

Nexus789's picture

Cloward-Piven is irrelevant. The destruction of the productive base of the US economy over multiple decades starting with Bush 1 via off-shoring, out-sourcing, etc, is what has ‘hollowed’ out the US economy. This has resulted in a massive rise in the unemployed, underemployed and flow through to a rise in benefits claims. Cloward-Piven is a convenient meme that fits a false idea that there has been an apparent ‘planned’ rise in benefit claimants. This is merely duplicitous shifting of the cause of the decline of the US economy away from those that supported and benefited from globalisation and the ‘financialisation’ of the US economy.

SAT 800's picture

Correct. Clinton was the President who signed the "Most favored Nation" status legislation for China. Aside from that, you've got the idea. globalization is code for de-industrialization. Manufacture is the magic in the modern high success, good life for the working class. The Industrialists, multinational Corporates bought Clinton and subsequents, to live out their wet dream of manufacturing with slave labor in China and selling into the dollar market. But as Henry Ford realized, if the workers can't afford the product, in his case, the Ford Car, the whole thing doesn't work. This, they overlooked. the assumption was that the golden goose couldn't be killed; but of course, it can. The other mass purchasers of .Gov as you specify; are the financial mandarins; another serious problem. And then there's the insurance industry; which was instrumental in selling Obama to the idiot class; "Obamacare" is just a program to sell the remaining solvent citizens to the insurance industry. Once you understand what the problem actually is; you realize you could put the country on the road to recovery in ninety days. The first step is to just cut off China; no imports; nada, nothing. This was the situation when I graduated from high school in 1960; China was a Communist Country and we didn't buy anything from them; nothing. Actually, we sold them shoes. Look it up. Naturally, everyone had manufacturing jobs that wanted them. It takes a lot of workers to produce your own underware and socks and pants, and shoes; and etc. etc. Free Trade itself is absolutely the Devil's Work; and a tremendous propaganda victory; the idiot citizens have been told enough times now that they "believe it", whatever that means, that Free Trade is "good". Amazing.

bilejones's picture

Nah, Look to Wilson aand the start of the globabist intervention Empire.

oudinot's picture

The Industrial revolution started 160 years before the' Petrollar'.

Radical Marijuana's picture

Yes, of course, oudinot. The industrial revolution began with the physical steam engines and the social debt engines.

However, it has been cheap oil which has been the main source of energy and material that has enabled the exponential development of the globalized industrial revolution. At the present time, without some series of technological and political miracles, the end of the age of oil is going to result in catastrophic collapses of civilizations, because there is nothing to adequately replace cheap oil actually proven to be on the horizon of history, while everything was built as if there would always be more energy available.

Numerous articles on Zero Hedge, like those from Gail Tverberg, demonstrate that the symbiotic relationship between the ways that that the industrial revolution started with BOTH the steam engine AND the debt engine continues through to the oil age, while the Petrodollar which became the ways that was financed for several decades, as the exponential growth of debts to pay for strip-mining the planet became more blatantly obvious, as the central characteristic of recent human history. 

The resolutions of the problems arising after the end of cheap oil are not yet known ... I believe that there are an abundance of theoretical alternatives, EXCEPT the established systems were based on the history of organized lies operating robberies, with the military backing up the money, which controlled the access to the natural resources. Those problems, of civilization controlled by enforced frauds, are what make the end of the Petrodollar phase of that process become so extremely problematic!

Nexus789's picture

True - the industrial revolution has two main parts – the British started the Industrial revolution and built an empire based on Iron, Coal and Steam and the US Empire has been based on the exploitation of hydrocarbons.  Although there has been much technological innovation it could only have taken place within an economy using hydrocarbons as the source of energy and a raw material.

SAT 800's picture

You have absolutely no idea what the British Empire was based on; and if you ever figured it out, you'd probably pee your pants; but you never will, of course.

wintermute's picture

The invention of the telegraph was a phenomenal boost to industrialization as well...

TahoeBilly2012's picture

Pretty funny when you read these comments and then stop and consider some of my dumbshit, Liberal educated friends who would argue that we are "on the right track" (but for evil Republicans). "Too fucked up to not be planned" or "on the right track" you decide, I am with you guys.

Payne's picture

Reminds me of a plane crash in the 80s where the Captain of a 727 got so concerned about landing with a one wheel up aircraft that he ran out of fuel and crashed the aircraft prior to ever attempting to land.

I don't think they have an evil plan I think they are backed into a corner of there own manipulations and are unable to get on the solid track again.  We have seen the same mentality in Japan with big corportations in the last 20 years, deny deny deny and hope for a Hail mary.