The company’s CEO Aleksandr Dyukov revealed this information on the sidelines of the TNF Energy forum, which was held in the oil-rich Tyumen Region in Siberia.

The conventional practice of conducting international trade used to be done using major global currencies like the dollar and euro. This decision increasingly reflected a strategic move to align its trade practices more closely with the economic and geopolitical interests of Russia, as well as its significant energy ties with China.

According to Dyukov, the company has not experienced any problems withdrawing its export earnings in foreign currency since it started trading with the said currencies. It also receives its revenue from oil and petroleum products sales at short notice.

Meanwhile, despite a notable shift in other national currencies of a substantial portion of its export transactions, Dyukov mentioned that the Indian currency is still not being utilized in export settlements. “This decision underscores the company’s selective approach in transitioning away from traditional global currencies, taking into consideration the specific dynamics of its international trade relationships, Arabic business news agency MenaFN reported. “We don’t use rupees. We mainly use yuan and rubles. We have practically moved away from payments in dollars and euros,” the CEO said.

Also, Russia is not the only one moving to dethrone the USD. The China National Petroleum Corporation (CNPC) has agreed to switch payments for gas supplies to rubles (RUB) and renminbi (RMB) instead of dollars. According to Simon Watkins, former senior FX trader, financial journalist, and best-selling author, in the first phase of the new payments system, this will apply to Russian gas supplies to China via the ‘Power of Siberia’ eastern pipeline route that totals at minimum 38 billion cubic meters of gas per year (bcm/y).

“After that, further expansion of the new payments scheme will be rolled out. It is apposite to note at this point that although ongoing international sanctions against Russia over its invasion of Ukraine in February have provided the final impetus for this crucial change in payment methodology, it has been a core strategy of China’s from at least 2010 to challenge the U.S. dollar’s position as the world’s de facto reserve currency,” he said in an article he wrote on OilPrice.com.

He added that China has long regarded the position of its renminbi currency in the global league table of currencies as being a reflection of its own geopolitical and economic importance on the world stage. “As of 2022, the RMB’s share in the SDR mix has risen to 12.28 percent, which China still regards as not truly befitting its rising superpower status in the world,” he further pointed out. (Related: Dollar DEMISE: Yuan overtakes dollar in China’s cross-border payments.)

Bloomberg: Russia has advantages in the current global diesel shortage

The global energy market is faced with a shortage of diesel as refineries fail to make enough of the key industrial fuel, further exacerbated after OPEC+ heavyweights Saudi Arabia and Russia slashed production and exports of denser, more sulfurous crude used to produce diesel fuel vital for industry and transport. However, recent circumstances are making Russia the receiving end of all advantages.

The global diesel shortage, for example, is benefiting one of the nation’s key export crude blends, the Eastern Siberia-Pacific Ocean (ESPO), as it is being traded at a premium to global benchmark Brent, according to Bloomberg on Monday, citing unnamed market players. ESPO, which was named after the pipeline that carries it to export markets, climbed to a premium of about $0.50 a barrel to Brent on a delivered basis for October shipments to China, traders told the outlet. Brent crude was trading above $94 per barrel at the start of the week.

The Russian crude blend, which is especially suitable for diesel fuel production, saw its biggest price increase since the G7 and the European Union introduced a price cap on Russian oil and petroleum products. These “influential” economies were pushing to to cut Moscow’s energy revenues, according to Viktor Katona, lead crude analyst at energy analytics firm Kpler.

“[The] last time when ESPO was positive to Brent was back in November 2022,” said Katona. According to the analyst, along with private refineries, Chinese state processing plants have also boosted their purchases, taking up to seven more cargoes of October-loading ESPO than usual.

Visit DollarDemise.com for more news related to the crash of the U.S. dollar.

Sound off about this article on the Economic Collapse Substack.

Sources for this article include:

• RT.com 1
• OilPrice.com
• RT.com 2

The conversation revolved around the idea that the dollar has not only been debased but also weaponized, which has led to decreasing trust in the currency as a global reserve.

Rickards noted, “It’s the weaponization of the dollar… you’re not just stealing our money with inflation, you’re actually telling us we can’t get it back,” emphasizing that while the BRICS countries might not fully trust each other, they are more likely to trust a “common trading currency backed by gold.”

Rule described the U.S. dollar’s previous “exorbitant privilege” advantage is coming to an end, thereby making things more expensive for Americans.

“The enemy of the U.S. dollar isn’t in Beijing or Moscow or Riyadh, it’s in Washington.”

For Piepenburg, the end-game is clear.

• Debt drives policy and debt drives current market directions.
• This debt will not and cannot be sustained by GDP growth or tax revenues,…
• …which means ultimately money printers will continue to de-value that world reserve currency,…
• …and hence devalue the once hegemonic respect for the US holder of that currency.

Piepenburg states, “America doesn’t seem to be the America that it was in 1944 or the America that it was under Kissinger in the early 70s,” indicating a significant shift in global economic dynamics.

While all experts seemed to agree that gold could play an increasingly important role, Piepenburg was skeptical that national leaders and central bankers would willingly give up their power to print money at will, dubbing this the “Nietzsche thesis,” questioning why leaders would want to “relinquish that ability to print at will.”

Overall, the panel agreed that the weaponization and debasement of the dollar have diminished its credibility, setting the stage for other forms of currency or assets like gold to gain importance in protecting investors from this increasingly beleaguered, self-destructive, debased and less popular US currency.

Watch the full discussion below:

Article cross-posted from Zero Hedge.