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Oh, by the way, on that China Russia Gas Deal - China to Pay for Russian Gas in US Dollars
05-25-2014, 11:22 AM #1
JayRodney ⓐⓛⓘⓔⓝ
Posts:31,279 Threads:1,438 Joined:Feb 2011
en.ria.ru has an interesting report this morning.
The following are recent comments by the Russian Energy Minister, who says:

"Payments under a $400 billion contract signed Wednesday between Russian gas giant Gazprom and China’s CNPC will be made in US dollars" [...]

"The Russian Finance Ministry is currently working on the issue of transferring accounts of export goods into rubles because of Western sanctions against Russia over the situation in Ukraine and Crimea."

"Many of Russia’s partners, including China, use the ruble in trade, but most export contracts are fulfilled in dollars."


Is it just me, or does anyone else find this fascinating they would use the USD for this?
Considering the Russian sanctions, and tensions between the US and China over the disputed oil rich Japanese area islands, I have to admit I didn't see that coming.

wonder.gif
05-25-2014, 01:46 PM #2
UniqueStranger Art in my heart
Posts:14,898 Threads:420 Joined:Jun 2012
Ah, yes, Russia and China - best frenemies. In my posted article below it seems Vlad is so desperate now that China could name it's terms.

Quote:China and Russia share a strong sense of their own historical greatness, now thwarted, as they see it, by American bullying. Both want the freedom to do as they please in their own back yards. Russia’s annexation of Crimea and its manoeuvring in eastern Ukraine have vexed America and Europe and left Mr Putin with even fewer friends than before. China’s push into the East and South China Seas is causing similar concerns in Asia, as smaller neighbours worry about its expansionism.

But the West should not panic. Despite all this, Russia and China will struggle to overcome some fundamental differences. Start with the evidence of the gas deal itself: the fact that it took ten years to do, and that the deal was announced at the last minute, suggests how hard it was to reach agreement. The Chinese were rumoured to have driven a hard bargain, knowing that Mr Putin was desperate to have something to show from his trip.

http://www.economist.com/news/leaders/21...-frenemies
05-25-2014, 01:58 PM #3
j browsing Member
Posts:5,158 Threads:1,098 Joined:Jul 2012
(05-25-2014, 11:22 AM)JayRodney Wrote:  en.ria.ru has an interesting report this morning.
The following are recent comments by the Russian Energy Minister, who says:

"Payments under a $400 billion contract signed Wednesday between Russian gas giant Gazprom and China’s CNPC will be made in US dollars" [...]

"The Russian Finance Ministry is currently working on the issue of transferring accounts of export goods into rubles because of Western sanctions against Russia over the situation in Ukraine and Crimea." and Russia today last week was reporting the opposite ..hmm.gif

"Many of Russia’s partners, including China, use the ruble in trade, but most export contracts are fulfilled in dollars."


Is it just me, or does anyone else find this fascinating they would use the USD for this?
Considering the Russian sanctions, and tensions between the US and China over the disputed oil rich Japanese area islands, I have to admit I didn't see that coming.
and just last week Russia today was reporting the opposite ...coffeetime.gif

"when life gives you lemons..throw them at someone"...Grumpy Cat good.png
05-25-2014, 02:09 PM #4
j browsing Member
Posts:5,158 Threads:1,098 Joined:Jul 2012
ST. PETERSBURG — China's $575 billion sovereign wealth fund said Friday it wants to increase its investment in Russia, boosting Moscow's hopes of strengthening ties with Asia as relations with the West deteriorate.

Major sovereign wealth funds in the Middle East and Asia have invested in Russian businesses and backed its state-funded private equity fund, the Russian Direct Investment Fund, or RDIF. By contrast, U.S. financial investors in the country remain few.

"CIC has invested several billions of dollars in Russia," said Ding Xuedong, chairman of CIC, on the sidelines of the country's main annual investment conference in St. Petersburghttp://www.themoscowtimes.com/business/a...00802.html getting cozy 13.gif

"when life gives you lemons..throw them at someone"...Grumpy Cat good.png
05-25-2014, 02:32 PM #5
JayRodney ⓐⓛⓘⓔⓝ
Posts:31,279 Threads:1,438 Joined:Feb 2011
(05-25-2014, 01:58 PM)j browsing Wrote:  and just last week Russia today was reporting the opposite ...coffeetime.gif

We've been following this whole Russia China agreement and China De-Dollarizing in Afghanistan substantially closer than mainstream. There seems to be an interesting dynamic at play here, but I'm kinda' befuddled by this.
I'd love to know what really went down here. Why the sudden shift? hmm.gif
Lingering questions.

wonder.gif
05-25-2014, 02:43 PM #6
j browsing Member
Posts:5,158 Threads:1,098 Joined:Jul 2012
[url]http://rt.com/op-edge/160720-russia-china-move-fThis large energy deal will be conducted outside the dollar system, so here is the beginning of the de-dollarization, the beginning of the de-Americanization. This is an indication that the two large countries, Russia and China, are forming a strategic alliance because they are tired of being harassed and cut out of the Western mechanisms, they are tired of the threats. So they are moving in a new direction, and they will take much of the world with them. I do not think the European countries that have strong economic relations with Russia will want to lose those

"when life gives you lemons..throw them at someone"...Grumpy Cat good.png
05-25-2014, 02:50 PM #7
Kreeper Griobhtha
Posts:10,595 Threads:633 Joined:Feb 2011
I wonder if this is the excuse for gas prices shooting up...

13.gif

I am not your rolling wheels, I am the highway
I am not your carpet ride I am the sky
I am not your blowing wind, I am the lightning
I am not your autumn moon, I am the night
The night
05-25-2014, 02:55 PM #8
UniqueStranger Art in my heart
Posts:14,898 Threads:420 Joined:Jun 2012
From recent studies here in Canada, they don't need any reason to hike up gas prices. gaah.gif
05-25-2014, 02:56 PM #9
Shadow Mrs. Buckwheat
Posts:12,782 Threads:1,182 Joined:Feb 2011
This announcement of the LNG deal shook up the markets big time and China and Russia have a lot of US$ to spend. I suspect they'll trade in US$ until their Tbills are all spent. They'd lose billions by allowing the US$ to tank first.
05-25-2014, 03:45 PM #10
JayRodney ⓐⓛⓘⓔⓝ
Posts:31,279 Threads:1,438 Joined:Feb 2011
yup.gif I said basically the same thing to Octo this morning, it's logical, but wanted to see if anyone else took that path of thinking.
This was a shot across the bow, and an omen of things to come.

wonder.gif
05-25-2014, 04:00 PM #11
Shadow Mrs. Buckwheat
Posts:12,782 Threads:1,182 Joined:Feb 2011
It isn't an ace card to be squandered at a loss that's for sure. They won't send the USDX sub-70 until it will really hurt the ambitions of NATO. Say... if Ukraine joins NATO. I see Putin has pledged $18.5b to development in the Crimea, slightly more (significantly) than the $17b IMF loan to Kiev chuckle.gif
05-25-2014, 04:03 PM #12
j browsing Member
Posts:5,158 Threads:1,098 Joined:Jul 2012
(05-25-2014, 02:56 PM)Shadow Wrote:  This announcement of the LNG deal shook up the markets big time and China and Russia have a lot of US$ to spend. I suspect they'll trade in US$ until their Tbills are all spent. They'd lose billions by allowing the US$ to tank first.
yep big l and I talked about that same...and it seems putin has his own economic demons right now

"when life gives you lemons..throw them at someone"...Grumpy Cat good.png
05-25-2014, 04:08 PM #13
Shadow Mrs. Buckwheat
Posts:12,782 Threads:1,182 Joined:Feb 2011
Russia has debt to GDP of 12.2%
USA is 106.5%
Japan 214.3%
http://en.wikipedia.org/wiki/List_of_cou...ublic_debt
I don't think Putin has any worries.
05-25-2014, 04:15 PM #14
j browsing Member
Posts:5,158 Threads:1,098 Joined:Jul 2012
Quote:Russian banks are under pressure to boost capital from two sides — a sharp economic slowdown is eroding the quality of loan portfolios, while at the same time major Russian companies, finding it harder to raise financing from Western lenders spooked by the Ukraine crisis, are turning to Russian banks for big loans. Officials are worried that banks could react by hiking interest rates, which will do nothing to speed Russia's economic recovery
http://www.themoscowtimes.com/business/

"when life gives you lemons..throw them at someone"...Grumpy Cat good.png
05-25-2014, 04:23 PM #15
j browsing Member
Posts:5,158 Threads:1,098 Joined:Jul 2012
Growth fundamentals in Russia remain anemic and further weakness in coming quarters appears likely. We look for the ruble to depreciate modestly versus the dollar as the year progresses.

Russian Economy Decelerated in First Quarter

Recently released data show that real GDP in Russia rose only 0.9 percent on a year-ago basis in Q1-2014. Although the print was a bit above the market consensus forecast, the outturn reversed a slight uptrend in the rate of growth that had been in place over the previous few quarters (top chart). The rate of real GDP growth in Russia has generally been very depressed over the past few years, and we believe that economic growth will remain weak for the foreseeable future. The forecast that we completed earlier this month looks for real GDP to grow only 1.0 percent in 2014 and 2.5 percent next year. Because growth in the first quarter was weaker than we had projected, we may need to lower our numbers when we update our forecast in a few weeks.http://www.fxstreet.com/analysis/russian...014/05/19/ article dated may 19 2014

"when life gives you lemons..throw them at someone"...Grumpy Cat good.png



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