De-Petrodollar-ization Esclates - China Imports Record Amount Of Russian Oil In April

Tyler Durden's picture

We have reported for years that Russia and China have been doing everything they can to displace the use (and influence) of the US dollar.

The US of course, either oblivious or too arrogant to care, has continued to bring Russia and China together by annoying both equally with its incessant meddling. Recall that recently both China and Russia have had to warn the US about its insistence on flying reconnaissance planes too close to their borders.

Of course, as the US has been playing geopolitical games, China and Russia have been working on strengthening their relationship with one another. At the end of 2015, China had become Russia's biggest oil customer, and as of April, Russian oil shipments to China hit a record high. Russia has also surpassed Saudi Arabia as the biggest crude exporter to China.

Russia Today has more

Beijing has ramped up imports of Russian oil by 52.4 percent last month compared to a year earlier. China's General Administration of Customs calculated a record 4.81 million tons.

 

In March, China bought 4.65 million tons of oil from Russia.

 

Russia, Saudi Arabia and Angola were China’s three major oil suppliers last month.

 

April imports from Saudi Arabia fell by 22 percent year-on-year to 4.12 million tons. In March, China imported 3.98 million tons of oil from the country.

 

China increased year-on-year oil imports from Angola last month by 39 percent to 3.98 million tons. Imports from Iran in April fell by 5.1 percent yoy to 2.76 million tons.

 

An International Energy Agency report showed that at the end of 2015 Russia overtook Saudi Arabia as the biggest crude exporter to China.

Russian exports to China have doubled over the past five years, and supply is expected to continue to be strong. Transneft's Vice-President Sergey Andropov said that China is expected to import 27 million tons of Russian crude this year via the Eastern Siberia-Pacific Ocean (ESPO) pipeline. The volume underscores the significance of contracts signed  in 2009 by Rosneft, Transneft, and China National Petroleum Corporation to have Russia supply oil to China through the ESPO.

Russian exports to China have more than doubled over the past five years, up by 550,000 barrels a day. Moscow and Beijing have significantly increased energy cooperation, with a wide range of multibillion dollar projects.

 

Russian oil transport monopoly Transneft’s Vice-President Sergey Andropov said in March that China is ready to import 27 million tons of Russian crude this year via the Eastern Siberia-Pacific Ocean (ESPO) pipeline. Supplies to China through the ESPO pipeline started in 2011 after Rosneft, Transneft and China National Petroleum Corporation (CNPC) signed contracts two years earlier. Currently five million tons of crude are supplied through the pipeline annually, and this is expected to rise to 15 million tons a year.

 

Experts say Chinese imports of Russian oil are likely to stay high over the coming years due to long-term crude supply contracts and rising demand from the world's second biggest oil consumer.

* * *

There is an underlying theme here that cannot be ignored.

Whatever the US has been focusing on, whether it's commissioning $4.4 billion warships, wargaming in the name of "regional stability", or arguing over LGBT rights and confederate flags, it is neither productive, nor helping its global economic standing. One day when the USD is no longer the reserve currency, and all of the games the Federal Reserve plays to allow fiscal policy to go unchecked are no longer an option, we suspect that it will wish it had done things quite differently.

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Cognitive Dissonance's picture

Don't think for a minute the Powers That Be aren't fully aware this is going on and are fighting a fierce rear guard action in addition to the more obvious public battles.

The back room conversations during this past weekend's G7 meeting must of been priceless. If only I were a Japanese Beetle on the wall.

Cautiously Pessimistic's picture

Yep, and we keep poking the BEAR and needling the Chicoms.  Just a matter of time until a 'Gulf of Tonkin' incident provides cover for some serious 'kinetic action'.

Bay of Pigs's picture

You wonder how long King Doelarr can stay on top of this nonsense.

Looks like Humpty Dumpty is heading for a fall.

Manthong's picture

Just wait to see what happens to the dollar after July when China opens their SDR trading operation.

 

ClydeCrashcup's picture

CogDis, I am shocked to see you use the infamous construction "must of" instead of "must've".

 

(Personally, my favorite is "wood of".)

Cognitive Dissonance's picture

LOL

I am illiterate at my core. If it weren't for spellcheck and Microsoft's grammar Nazi I would still be drawing on my cave walls. :-)

<Sadly Mrs. Cog has removed all my finger paints until I finish my assigned tasks. Can you say honey-do-list?>

ClydeCrashcup's picture

Don't worry, I took it for granite that you meant "must've" for all intensive porpoises.

RopeADope's picture

Have no fear, the US will recoup its M.E. petrodollar loss with a gain in Latin American.

I hear that M. Temer is very gung-ho for funding the American war machine's drone strike program.

Never One Roach's picture

Even Kissinger has been describing Obama's and Hillery's mismanagement of Russia and China is a "Big Mistake." he said they need to be wiser and foster better diplomatic relations with each so the two do not combine forces against the USA economically or otherwise.

 

He is right [for once]. The facts show China is outsmarting Barry big time in Asia and Russia in the middle east and Europe.

BarkingCat's picture

"meeting must of been priceless"

must HAVE! !!

 

Fuck, I never expected such a error from you Cog.

crossroaddemon's picture

Bet they used dollars to buy that oil. Just sayin...

cat2005's picture

Exactly.  I saw nothing suggesting the USD was avoided in these transactions.  Simply buying oil from Russia means nothing.  Which currency was used?  Stupid dumbfuck Tyler should know this. 

Walken's picture

Yeah, you lost that bet. Russia and China use their own respective currencies when trading with each other according to the agreements in place between them. 

kato's picture

the smelly bulgarian of zero edge is on putin's payroll. do not believe anything you read.

for zero Edge it is ok for putin to invade ukraine and for china to build islands in the sea. pay no attention to human rights in russia or china. the smelly bulgarian wants his servitude paycheck.

Bay of Pigs's picture

Yeah, thats it.

No potato for you today!

ClydeCrashcup's picture

It must be said, though, that ZH has never (to my knowledge, anyway) run any article that was critical of Russia, or Putin, in any way.  There does seem to be a knee-jerkedly pro-Russian bias here.

That being said, there is currently infinitely more in US foreign policy to criticize, and condemn, than in Russian foreign policy.

Haus-Targaryen's picture

In an empire built on lies, those that tell the truth are traitors. 

All the Kremlin has to do is to tell the truth, and in doing so undermines the United States and its narrative.  As the lies build on one another, it becomes more and more obvious who is accurate, and who is full of crap. 

That being said, the Kremlin doesn't tell us the truth because it cares about the truth.  It tells the truth because its serves its strategic purposes.  The Russian oligarchs would have no issue throwing us under the bus just like our own oligarchs have no problem with it.  

This is the truth of the matter.  Take it or leave it. 

peddling-fiction's picture

Tell me about it Haus.

I am in trouble for telling the truth.

The Emperor has no clothes on...<chuckle>

There I go again.

Consuelo's picture

 

 

Is it really a lack of criticism towards Putin/Russia, or is it simply a dearth of truth in mainstream media coverage of U.S. foreign policy...?

 

 

Restorative_Ally's picture

It's lack of criticism of Putin and Russia, but we can get that just about anywhere else. It's obviously biased toward Russian interests and anti-Americanism/NATOism, and might very well be a paid pet, but it still gives useful info and a realistic view of western economic and political chaos that we can't get from our own government supported press. And for that, it fits right next to RT in my news cycle.

WTFUD's picture

Yes when i want Real news it's the BBC/CNN crock-o-merde for me, boyo.

Plankus Maximus

Restorative_Ally's picture

They have their uses as mouthpieces. Every puzzle piece brings you one step closer to the whole picture.

WTFUD's picture

Yes , little boys Mouthpieces, to be precise.

Cognitive Dissonance's picture

Tyler has plenty of sarcasm reserved for Russia. I think it is as you state.....America's hypocrisy cup runith over at the moment.

Jack&#039;s Raging Bile Duct's picture

I would have considered the articles about Alexander Lychenko (spelling?) murder/assassination to have not been favorable of Russia or Putin. Even still your comment is valid. It's more about anti-US imperialism and Facism tha pro-Russia. Furthermore, the Oligarch's Wet Dream that is Russia is known and accepted. The USA still pretends to be free, rather than a neofeudal duchy like Russia. Pretense matters when considering what people pay attention to.

Volkodav's picture

The Phony Litvinenko Murder  William Dunkerley

Litvinenko Murder Mystery solved  William Dunkerley

                 Honest Brits:

                 https://www.youtube.com/watch?v=2Xq3LXKnatw  

 

 

earleflorida's picture

7 weeks and always a fucking asshole

fuck off -

kato a sleeper and CCc his pathetic echo

Haus-Targaryen's picture

You're just pissed you got canned from both SA AND ZH.  

Check yourself back into rehab. 

CTG_Sweden's picture

kato:

"the smelly bulgarian of zero edge is on putin's payroll. do not believe anything you read.

for zero Edge it is ok for putin to invade ukraine and for china to build islands in the sea. pay no attention to human rights in russia or china. the smelly bulgarian wants his servitude paycheck."

 

My comments:

If that´s true I think that´s great (but unfortunately it isn´t).

Joking apart! We probably need Russian and Chinese media investments that can counterbalance the Neocons. The neocons are not more elected than the Chinese Politburo. They have elected themselves. I think that is why ex-president Jimmy Carter said that the US is no longer a democracy. No matter who is elected they still rule. And there is no risk that possible Russian or Chinese influence would result in Chinese communist-capitalism in the West or Russian Christian Orthodox rule in the West. They would have to support something which Western citizens can approve of just like the Neocons can´t transform Middle Eastern Arabs into American-style dispensionalist "Christans" or Jews. The Neocons can just support Wahabist Sunni Muslims in order to create problems for their opponents. In Ukraine they supported both Nazis(!) and the Right Sector, a private army controlled by the oligarch Igor Kolomoysky. They even managed to topple the elected president Yanukovych. Despite the fact that even Stratfor admits that it was a coup d`état no Western big media informs the electorate about that fact. At least not is Sweden. I think we need something that can counterbalance the existing big media so that the electorate can get information which Neocons and like-minded people want to hide from us. I agree that both Russia and China probably want to hide information from us. But we need something that can counterbalance the Neocon media. Neocon and liberal media are not more elected than media controlled by the Chinese Politburo. They also seem to respect democracy to about the same extent. The coup d`état in Ukraine where Victoria Nuland over the phone said "I think Yats is the guy" is a perfect a example. I don´t think that they would respect democracy more elsewhere in Europe. They have proved their true colours. They are about as democratic as the Chinese Politburo. But you seem to prefer the Neocons for some reason. I don´t think that you want democracy neither in the US nor in Europe.

Furthermore, I would also like to remind the readers about the fact that Neocons are also agents for another country. When G. W. Bush asked his father about what a Neocon is this conversation ensued:

- Do you want names or a description?

- A description.

- Isra**.

And that was what a former President of the United States told his son, the incumbent President of the United States.

earleflorida's picture

there is no racializing with a paid-Neo-Con [MSM] hitman

ignore!

Dark Daze's picture
Dark Daze (not verified) kato May 23, 2016 2:29 PM

Yeah, like there are any human rights left in the US.

Shemp 4 Victory's picture

 

for zero Edge it is ok for putin to invade ukraine and for china to build islands in the sea. pay no attention to human rights in russia or china.

So damned kooky, it's gotta be a Ukie...

Walken's picture

Shit, Murica's Ministry of Truth is here to tell us, poor idiots, the "trooth" and set us all "right". 

JusticeTBuford's picture

What we're dealing with here is a complete lack of respect for the law. 

LawsofPhysics's picture

Yeah, go ahead sell oil...

LOL!

What do people think will happen to the oil price in FRNs when the world dumps the petrodollar...

fucking muppets.

oncemore's picture

I do not know, what will happen, but what I know, is the fact, that the Comex will stop to sell future contracts of oil, what is good.

Dark Daze's picture
Dark Daze (not verified) LawsofPhysics May 23, 2016 2:29 PM

Well now, let's see. For a brief period of time, once the US dollar crashes, the price of oil in FRN's will probably be well over 200.00 possibly even 300.00 a barrel. Since this will cause most countries to be instantly bankrupt, and since China has well over 20,000 tons of gold to lend, the pricing of all commodities in US dollars will cease, as it must. You go ahead and throw your weight around some more. It won't do you any good. You're going down for the count.

LawsofPhysics's picture

Well, we are doing just fine, but arguing of "prices" in the absence of price discovery is moronic.

WTFUD's picture

Watch the Euro-Peons falling one by one due to US illegal sanctions on Russia causing mayhem to their economies and a disgruntled workforce baying for life-support.
Soon Vichy DC's only Allies will be the Baltics , Slovakia, Slovenia and other insignificant Pikers. With Turkey, Saudi Arabia and the other extreme Wahhabi mercenaries on board the USSofA will be exposed for the fascist Junta that it is.

Absalon's picture

Russia and China are and always have been free to denominate and settle their oil trade in the currency, or other medium of exchange, of their choice. They could do it in gold if they wanted.

 

In the past, Russia would sell to China for US dollars.  China would earn the US dollars by dumping subsidized goods into Western markets.  Putin and the Russian oiligarches would steal the US dollars in Russia and park it in an offshore banking haven adding to the savings glut and creating a drag on the Western economies.  Wash, rinse, repeat.

 

If Russia and China start settling in yuan that can then only be spent in China buying consumer goods for the Russian population it will be nothing but good news for Western economies. It would also raise the abysmal standard of living in Russia.  Russia and China should stop talking about de-dollarization and just get on with it.

LawsofPhysics's picture

If the west was producing more oil than it was consuming, yes, you would be 100% correct. How's your Mandarin?

Absalon's picture

So far as I know, America does not import Russian oil.  I expect that Nigeria and Venezuela are both desperate to sell more oil to the US in exchange for U.S. dollars.  Canada is a big supplier to America and is happy to be paid in U.S. dollars.

WTFUD's picture

Yes they do! They import certain Russian oil products and yellow-cake . . . and Canada will learn the hard way.

If Donald gets in i expect Vichy DC's embargo on US Big Oil investing in Russia will be lifted.

Absalon's picture

Why would anyone in their right mind want to invest in Russia?  The Putin regime will steal the investment and their staff are likely to be murdered.

Shemp 4 Victory's picture

Posting from the psychiatric ward again?

ClydeCrashcup's picture

He is forget how Putin regime also is usual to insert metal straw in nostril and suck out brains. 

Mmmmmm, brains.

Shemp 4 Victory's picture

I think they'd be pulling dust from a dry well in the case of Absalon.