Rosneft To Sell Oil Products In Euros To Avoid Possible New U.S. Sanctions.

[Balu]

Rosneft To Sell Oil Products In Euros To Avoid Possible New U.S. Sanctions

By Tsvetana Paraskova (https://oilprice.com/contributors/Tsvetana-Paraskova) - Aug 21, 2019, 2:00 PM CDT

https://d32r1sh890xpii.cloudfront.net/news/718x300/6dd473416e27114d621dc6551f9cf92d.jpg

The largest Russian oil producer and one of the world’s biggest, Rosneft, told customers earlier this month that oil product sales in tender contracts will be priced in euros instead of U.S. dollars, Reuters reported (https://www.reuters.com/article/us-russia-rosneft-tenders-euro/russias-rosneft-to-switch-to-euros-in-oil-products-tenders-traders-idUSKCN1VB15J?rpc=401&) on Wednesday, citing five trading sources.
Rosneft’s move is seen by traders and analysts as a future hedge against potential new U.S. sanctions on Russia and/or its oil industry.
Rosneft has been on a list of sanctioned entities (https://www.treasury.gov/press-center/press-releases/Pages/jl2629.aspx) of the U.S. Department of the Treasury since 2014, when the U.S. and the EU imposed sanctions on Russia and Russian companies over the Russian annexation of Crimea. Those sanctions, however, don’t prohibit Rosneft accepting U.S. dollars as payments for the oil and oil product it sells.
Rosneft exports around half of the oil products its refineries in Russia produce. Most of the exported oil products are being sold via tenders to major international commodity traders or the trading units of oil majors. Trafigura, Vitol, Glencore, BP, and Cetracore are some of the top buyers of Rosneft’s oil products in annual, spot, or short-term tenders.
According to traders who spoke to Reuters, the goal of replacing the U.S. dollar with euros in future tenders—and this switch could be made as soon as this year—is to mitigate as much as possible future unpredictable U.S. sanctions on Rosneft.
At the end of last year, Russia’s oil firms were said to be demanding penalty clauses and payments in euros (https://oilprice.com/Latest-Energy-News/World-News/US-Mulls-Fresh-Sanctions-On-Russian-Oil.html) instead of U.S. dollars in their annual renegotiation of oil supply contracts with Western crude buyers, as the Russian oil industry was seeking to protect itself from possible new U.S. sanctions on the sector.
According to an exclusive Reuters report (https://www.reuters.com/article/us-usa-russia-oil-sanctions-exclusive/exclusive-russia-clashes-with-western-oil-buyers-over-new-deals-as-sanctions-loom-idUSKCN1NE0FL) in November 2018, buyers were unwilling at the time to yield to the Russian demands.
Last year, U.S. lawmakers discussed extending sanctions (https://www.reuters.com/article/us-usa-russia-sanctions/us-senators-introduce-russia-sanctions-bill-from-hell-idUSKBN1KN22Q) on Russia to energy and oil projects and sovereign debt markets in what Republican Senator Lindsey Graham called a “sanctions bill from hell.”
By Tsvetana Paraskova for Oilprice.com

https://oilprice.com/Latest-Energy-News/World-News/Rosneft-To-Sell-Oil-Products-In-Euros-To-Avoid-Possible-New-US-Sanctions.html

P.S.
Next move - contracts for Natural and Liquefied Gas? What will be the consequences? http://www.kolobok.us/smiles/standart/blush2.gif

[Drummond]

Rosneft To Sell Oil Products In Euros To Avoid Possible New U.S. Sanctions

By Tsvetana Paraskova (https://oilprice.com/contributors/Tsvetana-Paraskova) - Aug 21, 2019, 2:00 PM CDT

https://d32r1sh890xpii.cloudfront.net/news/718x300/6dd473416e27114d621dc6551f9cf92d.jpg

The largest Russian oil producer and one of the world’s biggest, Rosneft, told customers earlier this month that oil product sales in tender contracts will be priced in euros instead of U.S. dollars, Reuters reported (https://www.reuters.com/article/us-russia-rosneft-tenders-euro/russias-rosneft-to-switch-to-euros-in-oil-products-tenders-traders-idUSKCN1VB15J?rpc=401&) on Wednesday, citing five trading sources.
Rosneft’s move is seen by traders and analysts as a future hedge against potential new U.S. sanctions on Russia and/or its oil industry.
Rosneft has been on a list of sanctioned entities (https://www.treasury.gov/press-center/press-releases/Pages/jl2629.aspx) of the U.S. Department of the Treasury since 2014, when the U.S. and the EU imposed sanctions on Russia and Russian companies over the Russian annexation of Crimea. Those sanctions, however, don’t prohibit Rosneft accepting U.S. dollars as payments for the oil and oil product it sells.
Rosneft exports around half of the oil products its refineries in Russia produce. Most of the exported oil products are being sold via tenders to major international commodity traders or the trading units of oil majors. Trafigura, Vitol, Glencore, BP, and Cetracore are some of the top buyers of Rosneft’s oil products in annual, spot, or short-term tenders.
According to traders who spoke to Reuters, the goal of replacing the U.S. dollar with euros in future tenders—and this switch could be made as soon as this year—is to mitigate as much as possible future unpredictable U.S. sanctions on Rosneft.
At the end of last year, Russia’s oil firms were said to be demanding penalty clauses and payments in euros (https://oilprice.com/Latest-Energy-News/World-News/US-Mulls-Fresh-Sanctions-On-Russian-Oil.html) instead of U.S. dollars in their annual renegotiation of oil supply contracts with Western crude buyers, as the Russian oil industry was seeking to protect itself from possible new U.S. sanctions on the sector.
According to an exclusive Reuters report (https://www.reuters.com/article/us-usa-russia-oil-sanctions-exclusive/exclusive-russia-clashes-with-western-oil-buyers-over-new-deals-as-sanctions-loom-idUSKCN1NE0FL) in November 2018, buyers were unwilling at the time to yield to the Russian demands.
Last year, U.S. lawmakers discussed extending sanctions (https://www.reuters.com/article/us-usa-russia-sanctions/us-senators-introduce-russia-sanctions-bill-from-hell-idUSKBN1KN22Q) on Russia to energy and oil projects and sovereign debt markets in what Republican Senator Lindsey Graham called a “sanctions bill from hell.”
By Tsvetana Paraskova for Oilprice.com

https://oilprice.com/Latest-Energy-News/World-News/Rosneft-To-Sell-Oil-Products-In-Euros-To-Avoid-Possible-New-US-Sanctions.html

P.S.
Next move - contracts for Natural and Liquefied Gas? What will be the consequences? http://www.kolobok.us/smiles/standart/blush2.gif

Sanctions busting, eh, Balu ? So much 'better' than addressing WHY this company which I've never heard of, was subject to them in the first place.

In my eyes, it places Russia in the same basic ethically dubious quagmire as might be reserved for .. oh, I dunno .. the likes of Iran .. ?
Balu, Russia has sanctions placed on it because IT DESERVES THEM.

Of course, it'd be far better if I could say it didn't. However, you yourself say why you do deserve them ... the truly DISGUSTING annexation of Crimea !! Don't you feel any shame at all for your country's conduct in that matter ??

You don't want sanctions ? Fine. Then, don't EARN them in the first place. Give the people of Crimea their freedom from Russia's power-mad imperialism, and for once, let the world see Russia doing something truly decent.

Until you do .. enjoy your sanctions. Squirm away, trying to evade their consequences, if you must. Or, don't earn sanctions in the first place.

How's that for an idea, eh, Balu .. ??

[Kathianne]

Sanctions busting, eh, Balu ? So much 'better' than addressing WHY this company which I've never heard of, was subject to them in the first place.

In my eyes, it places Russia in the same basic ethically dubious quagmire as might be reserved for .. oh, I dunno .. the likes of Iran .. ?
Balu, Russia has sanctions placed on it because IT DESERVES THEM.

Of course, it'd be far better if I could say it didn't. However, you yourself say why you do deserve them ... the truly DISGUSTING annexation of Crimea !! Don't you feel any shame at all for your country's conduct in that matter ??

You don't want sanctions ? Fine. Then, don't EARN them in the first place. Give the people of Crimea their freedom from Russia's power-mad imperialism, and for once, let the world see Russia doing something truly decent.

Until you do .. enjoy your sanctions. Squirm away, trying to evade their consequences, if you must. Or, don't earn sanctions in the first place.

How's that for an idea, eh, Balu .. ??

Yeah, like blowing up nuclear testing and refusing to acknowledge. :rolleyes:

[Drummond]

Yeah, like blowing up nuclear testing and refusing to acknowledge. :rolleyes:

Quite. Russia's arrogant irresponsibility on the world stage is nothing short of staggering.

By the way, I've just noticed that Balu's posting is being made within the 'chat-lounge' area of the forum. Given the highly contentious subject matter, I'm wondering if it belongs there ? Maybe a move to the 'International News' thread grouping is more appropriate ?

Just my suggestion ...

[Balu]

Russia & China Keep Up Their Gold Buying In Q1 2019





May 7, 2019 Posted by Russia Briefing (https://www.russia-briefing.com/news/author/russia-briefing/) Reading Mode

Moves to de-dollarize economies being accelerated
Russia’s Central Bank purchased another 55.3 tonnes of gold in the first quarter of 2019, bring their total reserves in the metal to 2,163.8 tonnes, and 17% of total reserves. China followed suit, buying 33 tonnes over the same period. Russia bought 274.3t last year — the fourth consecutive year of +200t increases – while drastically reducing its US Treasury holdings, as part of its ‘de-dollarization’ drive” according to the World Gold Council. Russia now holds just a tiny proportion of US debt at less than US$15 billion. But it also holds the worlds largest gold deposits and could arguably be in a position to use that as a tangible asset to generate support for currencies such as the Ruble and the RMB Yuan.

https://i1.wp.com/www.russia-briefing.com/news/wp-content/uploads/2019/05/11103054-gold-bullion.jpg?zoom=1.5625&resize=606%2C288&ssl=1 (https://i1.wp.com/www.russia-briefing.com/news/wp-content/uploads/2019/05/11103054-gold-bullion.jpg?ssl=1)

The Gold buying strategy Russia and China have adopted has been dismissed as meaningless by many American economists. However, both Russia and China are looking to offer an alternative source of financing and having currencies backed by hard assets. The American system is based on leveraging debt as an asset, and this has caused problems in the past. A return to an asset-based financial and credit system suits both as Beijing and Moscow have found the US dollar and the global financial systems used to support US dollar and other global transactions can be used as a trade weapon against them. To push against a debt based system, one needs assets and Russia is fortunate enough to have plenty of these, mostly but not exclusively in the form of oil and gas reserves, which are among the worlds largest. But to sell those assets requires a buyer – and China is currently the third largest consumer in the world at 13 billion barrels a day, just behind the EU (15 billion) and United States (20 billion). However, China’s consumption is expected to rise.
https://i0.wp.com/www.russia-briefing.com/news/wp-content/uploads/2019/04/contact_RB-icons.jpg?zoom=1.5625&resize=38%2C38&ssl=1Looking For Russian Strategic Business Intelligence? Contact Us here (https://www.dezshira.com/office/russia)

There is another angle to this, although again it is regarded as “meaningless” by most US economists. That said, with US reserves currently standing at some 4,582 tons; a resurgent interest in establishing and adding to gold reserves has a special attraction for China and Russia, as reaching those kinds of figures is an achievable target for them. Gold is an emotive metal and remains linked to the U.S. dollar in those terms. This is because it behaves consistently as a multi-faceted asset. The price of gold is often sensitive to the overall perceived value of fiat or paper currencies in general terms. During times of tension or geopolitical turmoil, the price of gold tends to rise as faith in governments falls. What do the Russians and Chinese know that the Americans don’t?

[Balu]

Russia & Central Asia’s Gold Deposits – China’s RMB Reserve Backup




August 8, 2019 Posted by Russia Briefing (https://www.russia-briefing.com/news/author/russia-briefing/) Written by Chris Devonshire-Ellis (https://www.dezshira.com/personnel/chris-devonshire-ellis.html)




... How Moscow and Beijing wish to utilize these deposits remains unknown, although both are increasing their capacity to mine, produce, add to national reserves and export. But increasingly, it also suggests that both China and Russia have worked out the longer term United States strategy, and in terms of the US-China tariff war, China has been preparing for several years and has been taking note of how the United States has treated Russia, as well as how Moscow has reacted to that to both diminish the impact and re-position the economy. Both China and Russia consider the United States economy as having been “weaponized” and with the ability to be used against them if they do not follow general US policy. They collectively view the US as an “unreliable” trade partner. ...

https://www.russia-briefing.com/news/russia-central-asias-gold-deposits.html/

[Drummond]

All I'm seeing here, Balu, is more of your 'Might is Right' outlook. I'm getting the impression that you aren't interested in the rights or wrongs of any situation ... only that you win out.

If that's the case .. I feel sorry for you.

Do all of your countrymen share such an outlook .. that Mother Russia does something, and because it's Mother Russia doing it, it's automatically correct ? No 'right v wrong' considerations ever play a part in any of that ?

A major power in the world that fundamentally lacks a moral compass, is one that endangers the planet. And yes, Balu, as somebody who lives on this world, such consequences include you, too.

Have you ever questioned any State-approved outlook that your masters have foisted upon you ? Does it occur to you, EVER, that your masters are not infallible ?

Try to understand any or all of this. If you can.

[STTAB]

How strange, you would think Putin could tell his puppet not to put sanctions on Russia.............



Democrats, the party of stupid and dishonesty.

[Balu]

Russia & China Keep Up Their Gold Buying In Q1 2019


...What do the Russians and Chinese know that the Americans don’t?


Bank of England Governor Mark Carney proposes new currency, and says trade war is dampening business confidencePublished Fri, Aug 23 2019 5:34 PM EDTUpdated Fri, Aug 23 2019 6:21 PM EDT

Al Lewis (https://www.cnbc.com/al-lewis/)@tellittoal (https://twitter.com/tellittoal)


































Bank of England Governor Mark Carney said the world’s reliance on the U.S. dollar as a reserve currency is too risky and proposed a new digital currency to replace it.
“In a multi-polar world, you need a multi-polar currency,” he told CNBC’s Steve Liesman at the Federal Reserve’s annual conference in Jackson Hole, Wyo.
Carney said a new digital currency based on a global basket of goods would provide equilibrium to a system where some countries have moved to zero or negative interest rates, while others, including the U.S., remain positive.
“The question is how do you get there,” he said. “You don’t just jump to something new over night.”
Carney also said the trade war is dampening business confidence around the world. Disruptions in supply chains in the auto, steel and technology sectors, for instance, and taking their toll even among nations that are not directly involved.
“Those effects are impacting all of the economies around the world,” he said. “Whether you’re directly involved or not it’s impinging on the outlook.
Carney, a banker and economist, was once thought to be the next head of the International Monetary Fund, but he didn’t get the required backing from European governments. He has headed England’s central bank since July 2013






https://www.cnbc.com/2019/08/23/bank-of-england-governor-mark-carney-says-trade-war-is-having-a-confidence-effect-on-business-around-the-world.html

[jimnyc]

Russia is nothing more than propaganda machines - even had farms outed.

Putin is garbage. He's a dictator, nothing more and nothing less. But a failed one, as he scares no one, except maybe the citizens that get killed or disappear.

Gay or lesbian or even want to speak with people about it? Against the law. Freedom!!!

Russia is outward beauty, and shitty otherwise. S.H.I.T.T.Y.

[Drummond]

Bank of England Governor Mark Carney proposes new currency, and says trade war is dampening business confidence

Published Fri, Aug 23 2019 5:34 PM EDTUpdated Fri, Aug 23 2019 6:21 PM EDT

Al Lewis (https://www.cnbc.com/al-lewis/)@tellittoal (https://twitter.com/tellittoal)


































Bank of England Governor Mark Carney said the world’s reliance on the U.S. dollar as a reserve currency is too risky and proposed a new digital currency to replace it.
“In a multi-polar world, you need a multi-polar currency,” he told CNBC’s Steve Liesman at the Federal Reserve’s annual conference in Jackson Hole, Wyo.
Carney said a new digital currency based on a global basket of goods would provide equilibrium to a system where some countries have moved to zero or negative interest rates, while others, including the U.S., remain positive.
“The question is how do you get there,” he said. “You don’t just jump to something new over night.”
Carney also said the trade war is dampening business confidence around the world. Disruptions in supply chains in the auto, steel and technology sectors, for instance, and taking their toll even among nations that are not directly involved.
“Those effects are impacting all of the economies around the world,” he said. “Whether you’re directly involved or not it’s impinging on the outlook.
Carney, a banker and economist, was once thought to be the next head of the International Monetary Fund, but he didn’t get the required backing from European governments. He has headed England’s central bank since July 2013






https://www.cnbc.com/2019/08/23/bank-of-england-governor-mark-carney-says-trade-war-is-having-a-confidence-effect-on-business-around-the-world.html

Carney has some strange ideas ... and in the past, he's been a strong critic (on economic grounds, naturally) of Brexit.

Perhaps this has something to do with his being Canadian ?

He holds 'triple' nationality ... linking him to Canada, Britain, and the EU-loving Ireland.

From Wikipedia ....

https://en.wikipedia.org/wiki/Mark_Carney

... I see this interesting snippet of information. Balu might be interested ?


he .... was involved in Goldman's work with the 1998 Russian financial crisis.

Because, as we all 'know', Russia can never do anything wrong. It's infallible. Any evidence to the contrary is 'anti-Russian propaganda'.