Accounting in the Russian ruble & Chinese yuan will most likely weaken the dollar’s influence on the global energy market, Russian President Vladimir Putin said Monday.
“Accounting in rubles and yuan are very forward-looking. This means that if widely adopted, the influence of the dollar in the global energy [sector] will objectively decrease. This isn’t bad for the world economy, global finances or global energy markets,” Putin said during his speech at the Asia-Pacific Economic Cooperation (APEC) summit in China.
During a November 9 meeting on the sidelines of the APEC summit Putin and Chinese President Xi Jinping discussed the likelihood of utilising the yuan in transactions in fields of mutual cooperation. Based on the Russian president, possibilities to boost the utilization of the Russian and Chinese currencies in bilateral trade and notably in the power sector are still being studied.
Amid the western economic sanctions imposed on Russia over its alleged role in the Ukrainian crisis, Moscow has increased its economic cooperation with other BRICSnations – Brazil, India, China and South Africa – along with with Asia-Pacific and Latin America.
In October the central banks of Russia and China signed a three-year currency swap agreement amounting to 150 billion yuan ($24.5 billion). Based on the Russian regulator, the agreement will promote the development of bilateral economic relations and the more utilization of rubles and yuan in trade and investment.