Following China's announcement prior to last week's annual BRICS conference of their plans to implement a new oil contract that will be denominated in Yuan and convertible to gold, Russia is ramping up its delivery of petroleum to the Far East economy as Rosneft is expected to deliver a record 40 million tons of oil by the end of 2017.
Russia's oil giant Rosneft will deliver 40 million metric tons of oil to China in 2017, a record amount of oil supplied to the Asian country in a year, the company's CEO Igor Sechin said Sunday.
It was reported in late January that Rosneft was planning to deliver 31 million metric tons of oil to China.
"In [20]17 our company will deliver about 40 million metric tons of oil to China, according to our estimates. This is a record amount," Sechin said in an interview with the broadcaster Rossiya.
The oil business between Russia and China has been actively developing recently. – Sputnik News
China and Russia have been strong partners in the oil trade since 2012 when they first agreed to transact $400 billion worth over a decade's time. But the key in this agreement was that each would accept the other's currency as payment, and thus began the original crack in the long-standing petrodollar system that demanded energy be traded using only U.S. dollars.
Now the final nails in the Petrodollar coffin are being set once China fully implements their new oil contract that will compete directly with London's Brent contract, and the U.S.'s WTI one. And all that remains is for OPEC nations to choose to sell their oil on the Chinese exchanges in RMB since the current largest producer has already transitioned to this new system for several years now.