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The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan
Several months ago, when Russia announced the much anticipated "Holy Grail" energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar's stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative.
This changed in late June when first Gazprom's CFO announced the gas giant was ready to settle China contracts in Yuan or Rubles, and at the same time the People's Bank of China announced that its Assistant Governor Jin Qi and Russian central bank Deputy Chairman Dmitry Skobelkin held a meeting in which they discussed cooperating on project and trade financing using local currencies. The meeting discussed cooperation in bank card, insurance and financial supervision sectors.
And yet, while both sides declared their operational readiness and eagerness to bypass the dollar entirely, such plans remained purely in the arena of monetary foreplay and the long awaited first shot across the Petrodollar bow was absent.
Until now.
According to Russia's RIA Novosti, citing business daily Kommersant, Gazprom Neft has agreed to export 80,000 tons of oil from Novoportovskoye field in the Arctic; it will accept payment in rubles, and will also deliver oil via the Eastern Siberia-Pacific Ocean pipeline (ESPO), accepting payment in Chinese yuan for the transfers. Meaning Russia will export energy to either Europe or China, and receive payment in either Rubles or Yuan, in effect making the two currencies equivalent as far as the Eurasian axis is conerned, but most importantly, transact completely away from the US dollar thus, finally putin'(sic) in action the move for a Petrodollar-free world.
More on this long awaited first nail in the petrodollar coffin from RIA:
The Russian government and several of the country’s largest exporters have widely discussed the possibility of accepting payments in rubles for oil exports. Last week, Russia began to ship oil from the Novoportovskoye field to Europe by sea. Two oil tankers are expected to arrive in Europe in September.
According to Kommersant, the payment for these shipments will be received in rubles.
Gazprom Neft will not only accept payments in rubles; subsequent transfers via the ESPO may be paid for in yuan, the newspaper reported.
According to the newspaper, the change in currency was made because of the Western sanctions against Russia.
As a protective measure, Russia decided to avoid making its payments in US dollars, which can be tracked and controlled by the United States government, Kommersant reported.
"Protective measure" meaning that it was the US which managed to Plaxico itself by pushing Russia to transact away from the US Dollar, in the process showing the world it can be done, and slamming the first nail in the petrodollar's coffin.
This is not surprising to anyone who has been following our forecast of the next steps in the transition from the Petrodollar to the Gas-O-Yuan. Recall from April:
The New New Normal flow of funds:
- Gazprom delivering gas to China.
- China Gazprom paying in Yuan (convertible into Rubles)
- Gazprom funding itself increasingly in Yuan.
- 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).
Still confused? Then read "90% Of Gazprom Clients Have "De-Dollarized", Will Transact In Euro & Renminbi" for just how Gazprom set the stage for the day it finally would push the button to skip the dollar entirely. Which it just did.
In conclusion we will merely say what we have said previously, and it touches on what will be the most remarkable aspect of Obama's legacy, because while the hypocrite "progressive" president who even his own people have accused of being a "brown-faced Clinton" after selling out to Wall Street and totally wrecking US foreign policy abroad, is already the worst president in a century of US history according to public polls, the fitting epitaph will come when the president's policies put an end to dollar hegemony and end the reserve currency status of the dollar once and for all, thereby starting the rapid, and uncontrolled, collapse of the US empire. To wit:
In retrospect it will be very fitting that the crowning legacy of Obama's disastrous reign, both domestically and certainly internationally, will be to force the world's key ascendent superpowers (we certainly don't envision broke, insolvent Europe among them) to drop the Petrodollar and end the reserve status of the US currency.
As of this moment, both Russia and China have shown not on that it can be done, but it is done. Expect everyone to jump onboard the new superpower axis bandwagon soon enough.
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YES. The heads of families demarcate territories. Only that US hegemony is waning in their neceassry collusion. Their fear is the bond vigilantes who in turn fear their priniting presses. You therefore have no big meltdowns in the global currency space among the big boys when there is mutual terror.
Stabiility in the currency regimes is necessary for the continuing preys on the little people and nations with resources. Still plenty around for their voracious appetites.
AND JUST LIKE THAT,,,,AL QAEDA has opened up shop in MOSCOW !!!! I knew they would make it there sooner or later ! ;)
WAIT WAIT WAIT YOU MEAN THEY DON'T NEED GOLDMAN,CITI OR JP MORGAN MIDDLEMEN.
FREE AT LAST FREE AT LAST........ BETS ON WHERE RUSSIA ,CHINA Jekyll Island GOING TO BE?
This shit has been telegraphed light years in advance. Who's not making money?
German leading newspaper "Frankfurter Allgemeine Zeitung" has blocked since 2 weeks all comments on Russia/Ucraine.
I would estimate at least 90% of the comments had slammed the articles related to Russia/Ucraine published by the "FAZ" as untrue and lies.
Turkey & Germany to flip East.
Turkey first.
Yuan swap facilities already in play in 20 nations.
Gold backed Yuan soon.
perfect - so when the dollar collapses and Americans see their standard of living drop by no less than 25% they can blame the Russians and Chinese for "destroying everything" instead of blaming the Banksters...
Mr Yuan is a bigger Empty Suit than Mr Dollar
You mean to say that Russia and China did not put the horse before the cart. Shocking.
Remember also that China has 2 trillion of those puppies and can't be interested in being responsible for a quickie buzz cut in them.
At this point, I imagine, the Central banks of Russia and China printed equivalent amounts of their respective currencies and swapped them. Thus, the value of their currencies would not be altered by their buying or selling each other's currency on the foreign exchange.
(What Bernanke did to M3 of the American currency will remain in the unconscious minds of amateur economists until their deathbeds.)
As the world moves farther away from the Petrodollar a couple of things will occur. The value of the dollar on forex will drop because there will be less demand for it to pay for imports. As the value of the dollars drops, the oil producing nations who demand payment in dollars, will either quit the dollar or have to raise the dollar price of oil because dollars are worth less.
Finally, as a result of the assault on the dollar, the recession in America will be more palpable to more citizens, while inflation will become uncontrollable, and the only option to the administration in office WILL BE TO GO TO WAR.
This will not end well. But nothing was going to end well anyway.
The article is ungrounded and has little meaning.
Will the ruble/yuan exchange rate diverge from that of the ruble/usd/yuan rate? If not, the USD still rules.
What currency will be reserved?
Lastly, this may be exactly what the international powers to be, and especially the US, want. After all US trade deficits have flattened and with domestic energy production soaring there is added pressure on deficits. No longer can the US provide the world's currency reserve liquidity (see Triffin dilemma). This takes the pressure off of the US for parts of the world it has no influence in.
U.S. officials cut estimate of recoverable Monterey Shale oil by 96%
May 20, 2014 Los Angeles Times
The Monterey Shale formation contains about two-thirds of the nation's shale oil reserves
Federal energy authorities have slashed by 96% the estimated amount of recoverable oil buried in California's vast Monterey Shale deposits, deflating its potential as a national "black gold mine" of petroleum.
Just 600 million barrels of oil can be extracted with existing technology, far below the 13.7 billion barrels once thought recoverable from the jumbled layers of subterranean rock spread across much of Central California, the U.S. Energy Information Administration said
http://www.latimes.com/business/la-fi-oil-20140521-story.html
When US markets crash based on the structural problems (hyper bubbles) that ZIRP is causing, there is a massive hit of overseas US Dollars that will be dumped back onshore bigger than any Tsunami Japan has ever seen; when the rest of the world runs for the exit on their US Treasury and Cash holdings.
Even with these Sanctions that Washington is ordering Europe to impose on Russia, all it is doing is causing the race away from the the NYC-London Capital Markets and Anglosphere Legacy Trading Systems to increase. The ECB has already refused to copy New York and London’s lead with a QE program, even though the UK is screaming for them to turn on the printer to stimulate the Eurozone countries; the UK’s biggest markets that are all dying.
Deutsche Bank (Europe’s biggest lender) for instance has $8 billion of credit risk in Russia, and Washington is telling them to point a gun at their own head and shoot, right when business is already tight … this might explain why BaFin ordered Deutsche Bank out of London for the PM’s Fixes, and why they are taking the City of London to court over Euro trading and Euro Derivatives trading in London. Germany seems to have decided long ago that it is time to distance itself from Anglosphere markets and to move towards Russia and China and the rest of Eurasia. Also with the BNP Paribas in France having been fined a record $6 billion or so for US sanctions breaking, it seems that France doesn’t have much to lose by following Germany’s lead either.
To me it all looks like Washington WANTS to cause so much instability politically and economically in existing European loans and Euro Derivatives bets that Europe and Russia go pear shaped and blow up, which of course will then blow up London, then the US and the rest of the world, but perhaps they then think that this will make it look like it was all Russia’s fault, and hide all of the past crimes of western Bankstas by the required emergency powers and resulting war where NATO can come together against Russia. Which of course is a M.A,D scenario that Anglomaniacs believe is necessary.
Externalization is the same old trick that every tyrant in history uses. Washington and Westminster are trying to externalize all the negative energy within the EU and Anglosphere onto a new enemy outside of NATO’s playschool in order to force changes in the EU that they cannot get otherwise (ie, break ties with Russia and by default Eurasia in general)
sorry chuck. wrong. ecb today engaged blackrock to advise them on buying asset backed securities to the tune of 19 billion. look it up. at that point, it's a done deal. draghi is printing. and then, he can print and buy abs crap from the eu banks, and with that cash, they can buy us treasurys.
"History shows that when the Western oligarchs feel that their interests are seriously threatened, the result is usually a major war, but this time, things are much more difficult for them."
http://failedevolution.blogspot.gr/2014/08/an-alternative-to-neoliberal....
Earth to Tyler: Russia and other countries have been working on de-dollarization since before Obama became President.
Hey, if Obama invaded another country under false pretenses, would you enlist? If not, STFU.
....Wut?
You've got quite a defensive reaction going there, boy. Must be a sore spot. No one said anything about Obama, but you felt like you needed to say it was Bush's fault.
This IS happening on Obama's watch. He's had 6 years and he's fekking up worse than ever. He probably has no clue regarding the significance of this news.
When I first saw this picture I was amazed.
When I heard the "over-reaction" AGAINST ANYone questioning it, I thought "here we go again."
In light of the OUTcomes of the IMPLEMENTATION of POLICIES of this "president" it's simply IMPOSSIBLE that they're all "co-incidentally by chance."
The UNmaking ot the USA has been PLANNED.
You decide!
http://origin.factcheck.org/Images/image/2009/Ask_FactCheck/obamabook.jpg
"Washington Times: Ukrainian troops in 'full, chaotic retreat' as Putin opens 'third front' in stealth war"
https://www.kyivpost.com/content/ukraine-abroad/washington-times-ukrainian-troops-in-full-chaotic-retreat-as-putin-opens-third-front-in-stealth-war-362296.html
FINALLY...
Now keep the momentum going.
Obsolete the USD. Obsolete all fiat.
"A capitalist will sell you the rope to hang him with."
Vladimir Ilyich Lenin
Problem is that it wasn't capitalism that has caused the end it's the corruption. Either way the rope is sold.
"The commie will give ya the rope for free." Barry the Kenyan
I do not think, that the kenyan no-birth-certificate understand anything about communism, or capitalism; he has his nadlers in Tel Aviv, who understnad more.
Oh he's a Wall Street child for sure. Wall Street to Tel Aviv to Saudi Arabia. The wicked triangle of death.
The trade between China and USSR was done in Ruble and Yuan from 1949 to 1991 when USSR dissovled itself. Now the two countries went back to their historical norm and it's now called the end of USD?
Hmm.
China's economy in 1991 was how big? Oil production in Russia in 1991 was what?
A lot can change in 23 years.
size doesn't matter. what if two countries decided to barter? would that call for the end of USD?
Okay.
We're not talking about just two nations. There are 200 nations all importing and exporting.
The exporters -- and China is the largest since 2009 -- determine the terms of the letters of credit against which they will ship their goods. There are many items in a letter of credit: where shipped from, to what port, date of shipment, etc, but the exporter is the party that demands payment in a certain currency, No?
As more and more exporters of both energy and tchotchkes, cease to demand dollar denominated letters of credit, global corporations will cease to exchange their currencies for dollars at their Central bank. The Central banks of their countries then have no need to buy dollars on foreign exchange. They may even find that they have more than they need in reserve and sell dollars.
As demand begins to dry up and selling increases, the value of the dollar declines.
More and more countries and their corporations observe this and a band wagon begins to roll.
The foreign children today of the businessmen of the '50s, don't have the same regard for the dollars that their fathers did.
And they probably don't want to export their merchandise for the same currency which, in 2009, rolled off the printing press at the Fed the way their merchandise rolls off their assembly lines.
Canada exports everything, payable in USD. We settle in CAD the last week of every month and you can see the effect on CAD is larger when oil is high.
Remember we still import half our oil ( In USD ) and heavy oil is not at premium price
What Canada accepts in payment is irrelevant to this discussion.
If the BOC tells its exporters it wants 30,40, 50% of China's exports paid for in yuan and/or rubles, then that's how importers will have to pay or they'll have to get their icicle lights from Argentina.
I remember when everything we imported from Taiwan and China had to be paid for in USD. Of course, the National Debt then was just over $1 trillion. And QE was a stoner's fantasy.
If China and Russia are out to deny the USD it position as the singular reserve currency, and they work together, they'll probably succeed.
Right now, the single most important element safeguarding the dollar is the serendipitous fact that the Chinese have $2 trillion of them.
Let's say, one day Russia demands payment for all its raw material in rubles. And China demands payment in yuan, but still manipulates the yuan lower than it should be vis a vis the dollar, making American exports too expensive, continuing to worsen the US balance of trade.
Now you might expect with the importing world now having to buy yuan in order to pay in yuan, that the yuan would rise against the dollar.
But if Russia permits China to pay for its oil and gas with yuan and not rubles, then Russia can turn around and dump the yuan on the foreign exchange whenever the yuan gets too expensive.
If Canada didn't export so much of its oil to the US, it wouldn't have to import oil.
I hope reader2010 appreciates your thoughtfulness and clarity. I do.
Thanks
We sell heavy oil to the states produce half light oil we use and have to import the rest.
And unless I am wrong here aren't the Ruble and Yuan on a fixed rate peg to the USD anyways? So they could influence prices through USD manipulation. The real indicator shit is about to go south is when OPEC starts feeling it's oats and decides to allow oil purchases in a currency beside the USD. That is when all hell breaks loose.
"Ruble. Ruble. Ruble. Yuan. Ruble with gold chip. Yuan. Ruble. No dolla! No flies. Get out! Ruble. Ruble. Yuan....."
http://www.youtube.com/watch?v=WH_b9XwloHE
so Russia acepts yuan and rubles. Okay, why didn't they say they also accept Reals,Rand and Rupees? Didn't they sign the agreement fith the rest of the BRICS countries/
Some 6 kilometer long cracks just opened up in Dyngjujökull glacier, north east of Bárðarbunga where a dyke started to form in mid august.
http://www.ruv.is/frett/rifts-spotted-in-ice-cap
This dyke is now over 40 km long and heading directly towards Askja volcano. That volcano belongs to a different volcanic system, and they don't mix well.
http://www.ruv.is/frett/intrusion-now-40-kilometers-long
The intrusion is getting 4 km longer per day now. http://www.visir.is/lengist-um-fjora-kilometra-a-dag/article/2014140829176
So it would seem that things could start to heat up in Iceland soon.
Excellent.
Should slow down the chemtrails for a while.
Where's the DEER pic?
So does this mean the CIA is ready to announce they are Satoshi Nakamoto and that Bitcoin beta testing is complete?
This aggression will not stand
man!
Ruble accounts for less than 1% of global FX. It's pretty funny folks here thinks a few barrels of oil sold in direct transactions will change that. If all Russian oil exports went direct, that would amount to less than $1 billion a day in FX out of daily global fx churn of $5-ish trillion.
ZH has certainly become less insightful since the pro-Russian "Tylers" took over.
You have to learn to crawl before you walk and walk before you run.
If you think the Western central bankers don't care about even as little as 1% of the petrodollar business you don't understand Western central bankers.
The dollar cartel doesn't want to the precedent set and thus embolden other countries to do the same....especially OPEC countries. And now a word from the Fed police....
https://www.youtube.com/watch?v=0mj6B4DtNyM
Short sighted thinking. As Sen. Dirksen (sp?) once said way back in the 1950's, " Amillion here. A million there. Pretty soon we are talking about real money."
This sort of transaction won't stop with one. It will spread.
GE refuses USD accepts only Roubles,..... until then pfff
war ????? ha ha ha
Boy I hope no terrorist groups such as ISIS sink those two oil tankers!
That would drop oilprice to $80 or less.
The markets are at record highs so I don't think this means jack shit.
You go ahead and keep on thinking that.
Obama will have to play many rounds of golf to sort this one out. Fistbumps all around.
The only thing on is a bounty to capture the enablers. Did you miss the memo?
Somehow Ghadaffi missed that one.... ;-)
Regardless of the immediate effect
of the ruble/yuan petrocurrency,
it still is a kick in the nuts for the
petrodollar, and is one of many
"collateral damages" arising directly
from the US/AIPAC coup in Ukraine,
including permanent shifting/loss
of a number of vital and profitable
markets for a multitude of
commodities. There are many
unpredictable aftershocksthat
will be felt in financial markets.
As everyone in business knows
all too well, it is both difficult and
costly to find, to court, and
to develop a market and a customer;
and once you lose a loyal
customer to another vendor,
it ranges from extremely difficult
to impossible to entice that customer
to return. Indeed, many never return.
In 3 weeks no one will care, I'm ahead of the curve and don't care now.
Actually, in three weeks, everyone will care although most people won't know the cause of why they care.
The currency brokers in the UK and NYC are caring already. Big time.
China will buy Roubles with their Yuan and pay for oil, this increases the RUB value. That's what Vlad wants. Increases his net worth and relieves inflation in
Russia. If the scale is large enough.
Que the Doors:
"The end. This is the end."
Forgive the self promotion but I think I give a good explanation here as to why the death of the U. S. Dollar "has been greatly exaggerated". Yes, it will die, but only when the globalists pull the rug out from underneath it as is their eventual plan. The IMF bailed out Ukraine using "SDRs" for a reason!
http://goldnews.republicmonetary.com/2014/08/market_update_8_06_14.php
Tuco
Meanwhile, there will be a lot of currency traders jumping out of windows shooting themselves with nail guns.
This is not going to end nicely and could result in the coming to blows (no not that kind) unless the Fed Reserve Note looses it's status and Uncle Sam has to start selling off aircraft carriers to meet the bill collector's wants.
Loses
a white nation, russia, trading bilaterally with an asian nation, china. i fail to see what's wrong here. have you seen what's become of the usa?
this must explain record high levels in the stawk indices - flight from the USD
you mean flight from reality
You can despise and detest that fucking stinking Kenyan faggot monkey all you want, and god knows, I would shoot the filthy motherfucker in the face given half a chance without compunction, but the fact still remains that it was a fucking clique of evil American bastards funding the shit stabbing bastard and put the cunt there not once but twice and the fucking majority, the fucking retards who also voted for the cunt.
Until that problem is sorted out then the USA still has no future, because these fucking morons will only find another fuckwit to replace it
pray tell, how much better off
would US be if Mittens were presiden???
I couldn't possibly answer that in a precise way, say on a multiple or numbers of orders better, but one thing I can be quite sure of, Voting a human to be POTUS with at least a functioning brain is surely infinitely better than putting a fucking monkey, in particlar a queer monkey, atop the pole, brain dead or otherwise
That's the whole point. The Real And Permanent Rulers ensure that the public are given a choice between 'owned' candidates. Cf. the disappearance of RP as proof.
Keep in mind, 80,000 tons of oil is about 600,000 barrels. For a perspective, the US uses about 18 million barrels a day. It's a start but a drop in the bucket.
The War of 2015 – Part 3 – Nuclear False Flag
America has a long, long history with either using a false flag attack to start a war, or luring an opponent into attacking the US – which is just another version of a false flag.
Why We Need False Flags
The answer is easy. Ninety nine percent of all human beings actually hate war – at least, those who know what war actually is like. I’ve spent a lot of time studying war and living in war zones, and I hate war with a passion.
Yesterday, I described the propaganda that washes over you, each and every day. And, you would think that such psychological operations by the US government and bankster elites would be enough. But, we are made of sterner stuff, and that means that the elites always need to resort to the ‘false flag’ – to bring us to the point of war.
The Nuclear 9/11 Story
Well, Barack Obama said this in March:
Then, in June, we had Dick Cheney put this out:
Dick Cheney: There will be an attack on America within the next decade; worse than 9/11
YouTube shortlink: http://youtu.be/qrD7N2JMaJc
In THAT video, he talks about a nuclear attack on Washington and martial law. Of course, he said ‘within a decade’.
But, he didn’t stop there:
Dick Cheney: ISIS Will Nuke US
Now, that was a couple of months ago. And the rhetoric needed to be pumped up again, because this year’s September 11th was approaching fast. So, here is Dick, just six days ago, at it again: - Hannity / Cheney: ‘Absolutely Certain There Will Be Another Mass Casualty Attack Against U.S.’ https://www.youtube.com/watch?v=ULFfJrWs6kU - He said that the murder of James Foley will be repeated a million times over. - Wait, a million times? … as in a million people dead in a nuclear 9/11?-- Read on here.
Well that demon Cheney should know, having been a key orgainizer of the 9/11 attack and coverup.
The dick is now the Brain of Backdoor Barry, having been transplanted from the shrub.
Ninety nine percent...hate war – at least, those who know what war actually is like...
This is perhaps the key. For the most part actual participation by most in the US is vicarious at best, and that through the lens of msm and / or Hollywood. This experiential peace is / has been both blessing and curse but now, with the use of drones and their handlers far away from the actual theatre of conflict, we've gone the next step further.
War casualties have no worker's comp laws to contend with, and as long as it's viewed as a game that's being played on a make believe sacro-sanct field, a la football / baseball "between the lines" nonsense, we delude ourselves into thinking the outcome of any contention is all good when the final whistle or out occurs. It only ends with a W or L but no real maiming, death and destruction can occur in the stands.
False flag events are designed to bring the action home to the fans in the bleachers and open field seats, but rest assured, the luxury and owners boxes will continue to enjoy separate entries / exits with no possibility of mixing with the rabble in the stands, yet alone the field. Well, except at the end of the "game", and that only to bask in the "win".
jmo.
This will quickly cause devaluation of the US Dollar. Will that devaluation occur in time to pull the rug under the current US military budget?
Add inflation- I guess the other side of the coin here.
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Next up, Saudia Arabia announcing that they'll accept Rubles, Yuan (and hopefully, Au and Ag!) for their barrelz!
Is the US invited to the G-20 in Moscow next month?
More Oil trouble: Obola invades Nigerian oil center.
From "royters"
http://www.reuters.com/article/2014/08/28/us-health-ebola-nigeria-idUSKB...
http://www.dinarrecaps.com/our-blog/bretton-woods-conference-2014-70th-a...
Just wondering, is this real? Not much info about it...