Russia shifting from USD to Euro: largest oil company switches currency for all future trades

Russia's oil company Rosneft has decided to switch to euro from dollar for al future trades. Rosneft is the largest exporter of oil in Russia. This switch would help the company in minimizing the harm from the future US sanctions. Earlier, America threatened to impose sanctions on the company for its operations in Venezuela.

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Russia’s top oil exporter, Rosneft, has announced to ditch US dollar for euro for all future trades. The switch from dollar to euro would help to minimize the harm from any future US sanctions. According to a Reuters report, Rosneft has set euro as a default currency for all its new export contracts, including for crude oil, oil products, petrochemicals, and liquefied petroleum gas.

According to the report, the US had tried to impose sanctions on the company for its operations in Venezuela. Rosneft has asked buyers to use the euro/dollar exchange rate published by Bloomberg one day prior to the set payment day.

One trader reported that Rosneft used to have euro as a secondary option, but from last month it has become the main option. Rosneft is the largest oil company in Russia, exporting about 120 million tonnes of oil a year.

The company has been involved in reselling Venezuela’s oil to Asian countries, allowing the Latin American country to bypass US sanctions. Reuters reported that Rosneft became the largest oil buyer of Venezuela’s crude in July and August.

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Alexander Aryan
Alexander Aryan
After completing his Masters in Business Administration and Management from the California State University, Alexander dedicated his life into studying and writing about bitcoin and the technology behind it as he believes it to be the money of the future. Apart form being a writer, Alex is also a great speaker and loves to participate in blockchain events.

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