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.