Russia Is Doing It – Russia Is Actually Abandoning The Dollar

The Nail In The Petrodollar Coffin: Gazprom Begins Accepting Payment For Oil In Ruble, Yuan

Submitted by Tyler Durden on 08/27/2014
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.

http://www.zerohedge.com/news/2014-08-27/gazprom-begins-accepting-payment-oil-ruble-yuan

 

By local currencies you mean the Yuan or Ruble not anything like the Worgl, Austria experiment don't you?

http://www.lietaer.com/2010/03/the-worgl-experiment/

 

That food for thought, came from my own experiences in life. As for Vladimir Putin, he believe that honesty and morality should be the basis of everything for a nation and people to thrive. According to Russia Insider, in his biography; "First person", Putin said that the first line in any Russian law code should be moral values and that Russia has to be concerned as much with its spiritual position as its geographical one. He's a devout man, and if he is the greatest danger as Obama believes, it is to the new world order...or rather the one world order that Obama and other Washington elites envision.

When he took over Russia it was a kleptocracy, and it would have had the same fate as Ukraine if it wasn't for Vladimir Putin. He accepted the position when it was given him by Yeltsin because he was afraid Russia would fall apart. According to Russia Insider, he admires three 19th and 20th century Russian Christian philosophers—Nikolai Berdyaev, Vladimir Solovyov and Ivan Ilyin, whom he often quotes in his speeches, and has even instructed his regional governors to read the works of these philosophers during their 2014 winter holidays.

Russia Insider says that in order to understand Putin’s vision of Russia, his views on spirituality and his study of Christian thinkers such as Ilyin, Solovyov and Berdyaev, must be taken into account.

 

too bad talk is cheap and Putin doesn't live by or rule by such ideals.

 

Alpha, where do you come up with these things? The Russian president is voted in for six years, the next election will be in 2018. As for the media, what are you talking about? Almost all the Russian press is foreign owned and they're freaking out now because foreign ownership is going to be limited to twenty percent. This is the same people that were lying about not having any freedom of the press in Russia.

I gather you picked up this information from the same source as everything else. Somehow I don't think watching Harry Potter movies is exactly his type.

Yeah, like you knew everything else about him. He is part of the Russian culture, and you have to be rugged to live in that kind of a climate and environment. What I do think though, is that he has a Napoleonic complex because most Russians are tall.

He is very spiritual. That too is part of the Russian culture, or the Church wouldn't have survived seventy years of atheism. He told his governors to read books by three Russian Christian philosophers on their winter break because this is the vision he has for Russia.

Right! More than likely you would be taken over by his 'magic'... like everyone else. What's your obsession with him anyway?

 

Everyone sees people through their own eyes...

Look, Vladimir Putin has a certain vision for Russia that conflicts with the world order and government Obama and his crew are striving for. Since Putin hinders the exceptionalist nation in its 'superior' goals, they see him as being dangerous for the welfare of humanity...the ones that survive that is, after Washington bombs them all to kingdom come. I mean they have to conform to the exceptionalist's nation's vision no matter the cost.

Isn't that what Lenin did? I think twenty million died so he could form his utopia? Problem is his utopia was really one large prison.

:

 

The article is too long to post but for anyone interested, Pepe Escobar has written a piece that lays out the Grand Game that is being played out these days. It is the most complete article I've read on the subject.

http://www.tomdispatch.com/blog/175903/

 

"De-Dollarizing" Russia Pays Down Near-Record $53 Billion In Debt In Third Quarter

Despite the reassuring narrative from The West that Russia faces "costs" and is increasingly "isolated" due to sanctions for its actions in Ukraine, the most recent data suggests reality is quite different. First, capital outflows slowed dramatically in Q3 (from $23.7 billion in Q2 to $13 billion in Q3) with September seeing capital inflows for the first time since Sept 2013. Second, Russia's current account surplus was significantly stronger than expected ($11.4 billion vs $8.8 billion expected) driven by increased trade. Third, and perhaps most crucially, Russia paid down a massive $52.8 billion in foreign debt as Putin "de-dollarizes" at near record pace, reducing external debt to the lowest since 2012.

As Goldman explains, Trade and income improved notably...
The current account balance for Q3 came in at a surplus of US$11.4bn, above consensus expectations of US$8.8bn and up sharply from a small deficit of US$0.7bn in Q3 2013.

On our estimates, on a seasonally-adjusted basis, this now puts the current account at 3.8% of GDP, up from a low point of 1% in Q2 2013 and 1.6% for the full-year 2013.

The improvement in the current account came from both the trade balance, where imports have contracted (due to slowing domestic demand and the weaker Ruble), and from the income balance.

In our view, the latter could be due to either cyclical or structural factors, which are difficult for us to pinpoint, but risks to our current account balance forecasts nonetheless remain to the upside.

Meanwhile,
Net private capital outflows stood at US$13bn for the quarter, up slightly from US$10bn in Q3 2013 and similar to the pattern seen in Q2.

*RUSSIA 3Q CAPITAL OUTFLOWS SLOW TO $13B VS $23.7B OUTFLOW IN 2Q

*RUSSIA HAD $11.6B NET CAPITAL INFLOW IN JUNE: CENTRAL BANK

June was first monthly net inflow since Sept. 2013, according to central bank statement.

And finally - "de-dollarization" accelerates as Russia pays down its foreign debt at the fastest pace since Lehman...

 

Thanks.

I wish it was not a fact...but it is.

AboveAlpha

 

It has been my JOB to study and keep tabs on Soviet and Russian men of power since my first JOB were I studied everything there was to know about Soviet Leader Yuri Andropov...a dying man obsesed with destroying NATO and the U.S.

I KNOW what Putin is.....and he plays games and consolidates his power all the while the Russian People pay for it.

People in Russia have had Leaders telling them what to do for close to 100 years and the problem is the majority of Russian's simply cannot think for themselves any more.

Putin exploits this and at the same time builds a CULT OF PERSONALITY by demonstrating his MANHOOD by perfoming displays of MartialArts and if you notice PUTIN NEVER GET'S KICKED OR THROWN TO THE GROUND.

He is an EGO MANIAC and as I stated....put ME in the ring with him and all will see such a Dictator have his A$$ handed to him.

AboveAlpha

 

Putin is doing fine and he is successful, because he is doing what Russian people wanted him to do. Crimea is his major achievement, do you like it or not.

 

It's pretty sad if Putin or Russain's think Putin's CROWNING ACHIEVEMENT is the Crimea.

Basically it is like saying....YAY!!! I finally got the gun to shoot!! Even if I did shoot my own foot.

AboveAlpha

 

the usual russian wedding


soon.
again

 

I read your text in a mirror reflection and it look changed...
I KNOW what Obama is.....and he plays games and consolidates his power all the while the west People pay for it.

People in West have had Leaders telling them what to do for close to 100 years and the problem is the majority of West's simply cannot think for themselves any more.

Obama exploits this and at the same time builds a CULT OF PERSONALITY by demonstrating his MANHOOD by perfoming displays of BASKETBALL and if you notice OBAMA NEVER DOESN'T FALL AND PLAYS BETTER THAN ALL.

He is an EGO MANIAC and as I stated....put ME in the court with him and all will see such a Wold Dictator have his A$$ handed to him.

 

the usual ukrainian wedding

right now

 

Banned From U.S. Banks, Russian Oil Giant Turns To Even Bigger Banks In China

Russian state owned oil company Gazprom is turning to China for foreign sources of capital now that the U.S. and European financial markets are closed to them.

Beijing is trying to open its capital markets, and lending to foreign institutions is par for the course. Gazprom make for a solid borrower, with tons of collateral in the form of gold…black gold that is. For Gazprom, Chinese interest rates aren’t as low as what Western banks can offer. But they are still more attractive than Russian banks. China’s benchmark interest rate is 6%, while Russia’s rate is 8%.

http://www.forbes.com/sites/kenrapo...-even-bigger-banks-in-china/?partner=yahootix

 

LOL! Funny.

Thing is....an American President has never taken over the Media to further his own agenda and unlike Russian's...American's would NEVER allow their President to get away with it.

He would immediately be removed from office.

AboveAlpha

 

In the USA not politicians, but corporations have the big power...
In America rich industrialists such as billioner Edward Buffett ( 65 billions) the owner of Berkshire Hathaway enter in board of directors of Associated Press which controls overwhelming part of news which are seen by citizens USA. What they will tell that and publish the majority of the main mass media of the West.

 

I don't think many have the intelligence to understand the implications this could cause
If the dollar ceases to be used as the worlds currency America is all but done for
Only reason we have been able to print dollar after dollar by the trillions with little if any ill effect like massive inflation because the high demand for the dollar. once that demand wanes even just a little inflation will sky rocket out of control

 

democrat president don't have to
the majority of the press willingly becomes puppets for a democrat administration

 

Obama the priest who well washes out brains - really, independently, he can only make such us decisions (before yesterday when his credit card was closed) is to write the law on bigger protection of a banking system

 

They will meet at sixty

 

Before wishing a bad to another, look that occurs at you...
Budget of Ukraine:
income - 230.574 million hryvnias
expenses - 264.238 million hryvnias
deficiency - 35.204 million hryvnias.

Grand master Putin. Analysis of the Ukrainian party


That the Kremlin achieved:
— I attached the Crimea to Russia.
— Ukraine won't be included into NATO about what representatives of alliance more than once spoke in clear.
— Ukraine wasn't started up in Association with the EU. Moreover, Ukraine didn't even manage to leave the CIS.
— Russia doesn't deliver free gas to Ukraine.
— the genocide of Russians in the Southeast of Ukraine didn't occur. Yes, for the present there shoot. Yes, for the present there are victims, but that could be more(concentration camps of Filatova/Kolomoysky) — the success is obvious.
— to economy of Ukraine injuries, incompatible with life are done. The ultimate goal — to make so that the main thought of residents of the country began "to eat first of all" and "to get warm first of all", but not ardent nationalism "to Moskalyaka on a gilyaka".

At the macroeconomic level:
— the most favorable contract on gas is signed with China, there is a work on the contract (so-called. The western Route) which will allow to throw in the long term on the Asian markets that gas which is now delivered to Europe;

— the frame contract in the "oil in exchange for electricity" and "oil in exchange for goods" format is signed with Iran (that caused absolute rage in Washington). Moreover, Moscow and Tehran managed to press through two major decisions at the summit of the Caspian states: on the Caspian Sea there will be no bases of NATO, and now the Caspian bottom is divided so that Turkmenistan and Kazakhstan couldn't lay without the permission of Russia and Iran gas pipes to Azerbaijan for gas export to Europe.

— it was succeeded to carry out the following stage of integration at the Euroasian space, documents on the Euroasian economic union are signed;

— there is a dedollarization process. The currency swap for 150 billion yuans that will allow to start squeezing out dollar from mutual calculations is signed with the Chinese Central Bank ruble-yuanevy, having begun with energy carriers — oil and gas. With Iran the Russian-Iranian bank which will allow to construct normal not dollar financial interaction between two economies will be created;

— there is a withdrawal from investments into bonds of the western countries.
— the income which went to NWF before, will go directly to the budget now;
— The Central Bank, at last, joined in fight against export of the capital.

Also, It should be noted 3 major foreign policy news:
1. The European Union didn't sign The Transatlantic Trade and Investment Partnership — the trade pact which turns the EU into an appendage of the American economy.
2. Europe didn't manage to be disconnected from the Russian gas and to force to freeze waiting for the American LNG.
3. Washington gave us a big gift. Having organized attempt of a Maidan in Hong Kong, they finally convinced China of need of urgent activization of economic cooperation with Russia. Results of visit of the prime minister of the People's Republic of China Li Ketsyan to Moscow — the best certificate of that, how strongly China it is interested in Russia.

If in this context it seems to someone that all is bad, all was gone, "Putin caved in and prepares for Milosevic's destiny" — that this someone either the blind man, or the fool, or the provoker on a salary. The fourth option simply isn't present.

full texthttp://politrussia.com/world/grossmeyster-putin-analiz-ukrainskoy-partii-472/ (RUS)


PS:how brainwash Ukrainians simply you wonder...There is in Ukraine such historian - professor Bebik, the doctor of political sciences, the vice rector of Ukraine university. He weekly gives lectures on radio of "Ayr" and so he says that certain proto - Ukrainian "teukra" mentioned still by Herodotus created Troy, and after created all Greece together with Rome. Moreover, "the first Rome" in general is in the Sumy area, on a joint of the rivers Romain and Sula, and is today the city of Romna. So that Rome which located on Tiber, the second and is created by Ukrainians too. It would be ridiculous if professor Bebik was a cheerful joke from local KVN. But it reality.

 

we'll refinance. You'll not
And you are right about `wishing a bad to another`. But think about it regardly to yourselt

 

We never shouted the Ukrainian at a gilyaka (kill).