When "Gazprom" will destroy the hegemony of the dollar?
Material posted: Publication date: 09-09-2014

The Ministry of energy of 8 September, must prepare proposals that will move to settlements in rubles in the supply of energy resources. Then the bids must be submitted to the governmental Commission on fuel and energy complex. This will be the first major step in the refusal of dollar at calculations for oil and gas.

In order to abandon the dollar and switch entirely to payment in rubles or yuan, still have a long way to go. The duration and success depend on many factors, as well as the very beginning of this process was caused by several events, writes "News Economy".

"Gazprom" goes East

The last months were very favorable for the development of "Gazprom" in the East direction. Now began the construction of the gas pipeline "Power of Siberia". This pipeline will be used for the supply of gas from the Yakutia and Irkutsk gas production centers to the far East of Russia and in China. It will connect to the gas system of China via Vladivostok.

May 21, 2014 Gazprom and China national petroleum Corporation signed a contract of sale of gas via the Eastern route. The contract is concluded for a period of 30 years and assumes delivery of Russian gas to China in the amount of 38 billion cubic meters of gas per year. Its total amount is about $400 billion.

While the estimated cost of construction of the gas pipeline "Power of Siberia" will be 770 billion rubles At the same time, it should be noted that earlier the head of "Gazprom" Alexei Miller estimated the cost of construction of the pipeline, the establishment of the necessary infrastructure and preparing for the launch of Kovykta Candy and $55 billion.

If control over the "Power of Siberia" will remain in Gazprom, the gas giant will be able to use an advance payment from the Chinese party in the amount of $25 billion to Finance the project.

The length of the "Power of Siberia" will make about 4 thousand km (Yakutia - Khabarovsk - Vladivostok - about 3200 km, Irkutsk region - Yakutia - 800 km), the estimated capacity should reach $ 61 billion cubic meters of gas per year. The route will run along the existing trunk oil pipeline "Eastern Siberia - Pacific ocean". This allows you to optimize infrastructure costs and electricity.

China and sanctions

By the way, China did not support sanctions against Russia.

"If we proceed from the actual situation, sanctions usually cannot solve the problem, on the contrary – they can cause new problems that do not meet the interests of all parties and the original intention to resolve the crisis," - said the official representative of the MFA of the PRC.

And this is not surprising, since Western sanctions against Russia wins China. In particular, it was possible to obtain favorable conditions for the historic gas agreement, and the issue of ensuring own needs of China will be easier to solve, given the potential of Russia.

In addition, the transition to settlement in the yuan and the ruble strengthens the role of the Chinese currency on the world stage, and that the authorities have been striving for for a long time.

What scares US

The dollar is the main asset of the USA, which allows them to dominate the world, and any action to transfer payments in national currency to weaken the dollar, especially if we are talking about large countries such as China and Russia.

As a result of the catastrophic reign of President Obama as in the country and in the international arena, it is appropriate to encourage all key global superpower to abandon use of petrodollar and end the dollar as reserve currency, zerohedge wrote back in June.

At this point, neither the yuan or the ruble can't be an alternative reserve currency, but the desire to move away from the dollar will only contribute to the development of their currencies and financial markets.

The U.S. effort to suspend Russia from the Western financial markets by imposing various kinds of sanctions only strengthens Russia's relations with its major partner - China. And this, in turn, contributes to the creation of a Eurasian strategic Alliance, which is so undesirable for US.

Russia's response to sanctions

Russia is preparing to impose new sanctions, as well as ready to answer them. Prime Minister Dmitry Medvedev has said that the response will be asymmetric.

In particular, the Russian skies may be closed for flights of aircraft of Western companies. As a result, some companies may fail, as flights outside the airspace of the Russian Federation will be more expensive.

"But it's a bad story. Just would like to see our partners at some point realized it," - said Medvedev.

The question is, as far as possible from the technical point of view and will not have any negative impact on Russian companies. In particular, at present, foreign airlines flying in the Asia-Pacific region, flying on TRANS-Siberian route, and for this pay a royalty "Aeroflot". According to some estimates, every year the Russian carrier receives these payments of about $300 million.

Source: http://rusvesna.su/economy/1410175590

Tags: financial center , resources , geopolitics , gaz