• 2 minutes Rational analysis of CV19 from Harvard Medical School
  • 4 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 7 minutes Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 9 hours Joe Biden the "Archie Bunker" of the left selects Kamala Harris for VP . . . . . . Does she help the campaign ?
  • 2 hours Tesla Begins Construction Of World’s Largest Energy Storage Facility
  • 16 hours Trump Hands Putin Major Geopolitical Victory
  • 1 hour America Could Go Fully Electric Right Now
  • 10 hours Those Nasty White People and Camping Racism
  • 1 min Will any journalist have the balls to ask Kamala if she supports Wall Street "Carried Interest" Tax Loophole
  • 4 hours In 1,267 days, Trump has made 20,055 false or misleading claims
  • 5 hours COVID&life and Vicious Circle: "Working From Home Is Not Panacea For Virus"
  • 6 mins Candidate Biden refuses to answer questions and hides from public. If u could, what questions would you ask him
  • 41 mins Buying votes is cool now.
  • 12 hours The Truth about Chinese and Indian Engineering
  • 21 hours Brent above $45. Holding breath for $50??
  • 1 day Oil Tanker Runs Aground in Mauritius - Oil Spill
  • 2 days China wields coronavirus to nationalize American-owned carmaker
  • 2 days Open letter from Politico about US-russian relations
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

One Of The World’s Largest Oil Companies Just Ditched The Dollar

Russia’s largest oil company Rosneft has already completed the switch away from the U.S. dollar to euros in its export contracts to minimize risks from potential new U.S. sanctions, Rosneft’s chief executive Igor Sechin said on Thursday.

Rosneft has already fully switched to euros as the base currency for all its export contracts, and sees big potential in working in euros, Sechin said at the Eurasian Economic Forum in Verona, Italy, on Thursday.

According to Rosneft’s top executive, the Chinese yuan could become a much more important global currency in the future, because of Chinese economic growth.

The share of the U.S. dollar in the global oil and oil products trade is around 90 percent currently, Sechin said but noted that in ten years’ time, due to the Chinese economy, the yuan could raise its share from the current 2 to 5 percent.

Russia is looking at ways to settle its energy transactions in euros and/or rubles in order to avoid dealing with dollars, Russian Economy Minister Maxim Oreshkin told the Financial Times in an interview earlier this month.

At the beginning of October, reports emerged that Rosneft set the euro as the default currency for all new exports of crude oil and refined products, as the state-controlled giant looks to switch as many sales as possible from U.S. dollars to euros. Related: How Much Oil Is Up For Grabs In Syria?

As of September, Rosneft was seeking euros as the default option of payment for its crude oil and products.

Rosneft is the biggest oil exporter from Russia, selling around 2.4 million barrels per day (bpd) of oil, according to Reuters estimates.

The United States has not ruled out imposing sanctions on Rosneft over its involvement in trading oil from Venezuela. Rosneft has been reselling the oil from the Latin American country to buyers in China and India and thus helping buyers hesitant to approach Venezuela and its state oil firm PDVSA because of the U.S. sanctions on Caracas, and, at the same time, helping Venezuela to continue selling its oil despite stricter U.S. sanctions.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on October 24 2019 said:
    Russia’s oil giant Rosneft decision to ditch the US dollar in favour of the euro in its international export contracts is a logical pre-emptive measure to protect itself against US sanctions.

    Rosneft is expecting the United States to impose sanctions against it at some point because of its dealings with Venezuela. Rosneft has been openly defying US sanctions by helping Venezuela sell its crude oil around the world and getting paid for it.

    As a matter of fact, Russia doesn’t need the dollar to price and sell its oil and gas around the world. It has so many options including using its own currency the rouble, the petro-yuan, the euro and also barter trade to mitigate any adverse impact by US sanctions on the Russian economy. Moreover, less than 5% of Russia’s annual trade estimated at $688 bn is with the United States. The bulk of the trade is with China and the European Union (EU).

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News