$117.5 billion China-Russia energy deal dumps US Dollar for the Euro

On 6 Feb 2022 China Environment reported about China and Russia announcing significant strengthening of cooperation between the two nations in the energy sector, with major long term oil and gas deals between the two nations being signed.

The Chinese President said that China and Russia should strengthen joint innovations in major energy technologies, as a way for both countries to ensure energy security. This was a clear reference to the need for both to protect themselves from US attempts to undermine energy security as a strategic weapon against the two nations.

A key element in strengthening security from US economic aggression is to avoid trade in US dollars.

China, Russia and EU edge away from petrodollar (photo Nikkei Asia).

The attached video from Difference Frames the World on 12 Feb 2022 discusses how the new Russian oil and gas deals with China are worth an estimated $117.5 billion, and will use Euros, not US dollars, as the settlement currency.

This major trade deal will further weaken the hegemony of the US dollar, while at the same time maximising the mutual benefit to Russia, China and the European Union. The Euro accounts for about one third of the entire international payment system. The fact that the Euro circulates mainly in Europe will strengthen all 3 parties at the expense of the US. China is already the largest trading partner of the EU, and Russia also does significant trade with Europe. This will help Russia increase the flexibility of its trade payments, and circumvent reliance on the US controlled SWIFT system.

Watch video: