Russia’s oil giant Rosneft ditches US Dollar

Russia’s oil giant Rosneft is ditching US dollar. Russia’s Rosneft has set the euro as a default currency for all its new export contracts. This includes crude oil, oil products, petrochemicals and liquefied petroleum gas contracts.

Reuters reports:

“The switch from U.S. dollars, which happened in September according to the tender documents published on Rosneft’s website, is set to reduce the state-controlled firm’s vulnerability to potential fresh U.S. sanctions.

Washington has threatened to impose sanctions on Rosneft over its operations in Venezuela, a move which Rosneft says would be illegal.

Rosneft did not immediately reply to a Reuters request for comment. Rosneft is Russia’s top oil exporter, shipping abroad about 120 million tonnes of oil a year, or 2.4 million barrels per day.

“Rosneft has recently adjusted all the new contracts for export supplies to euros. We’ve been notified,” a trader at a company regularly buying from Rosneft told Reuters.

Reuters previously reported that Rosneft has turned to euros in its oil products sales.

According to three traders, Rosneft has named the euro as the default currency in all new contracts for its export sales starting from September.

As benchmark oil prices are quoted in dollars, Rosneft asks buyers to use the euro/dollar exchange rate published by Bloomberg one day prior to the set payment day, according to tender documents.”