…from South Front

– First published … October 10, 2019

[ Editor’s Note: Once again we see another major company dumping the dollar in trade for the Euro. VT has predicted that this would be a long lasting result of aggressive US sanctions.

What do I mean by that? Well, for example, the recent ones on the EU were not aggressive because the World Trade Organization had approved them after confirming that the EU had been subsidizing Airbus.

The EU reprisal sanctions will not be approved. So we will watch the destruction of another international body by nations showing more and more that they will not be held to any agreements they have made if they “change their minds”.

Part of this is due to Trump getting away with it, and the EU wanting the same privilege. That foster continuing uncertainty in international trade, as the squabbles cross over onto the political battlefieldJD ]

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Who is going to get burned the most, long term, in the trade wars?

– First published … October 10, 2019

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.”

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6 COMMENTS

  1. The US has overplayed its hand over the past twenty years.

    Invading Iraq to stop the Europeans from buying their oil in euros.

    Overthrowing the government in Ukraine to install a puppet.

    Invading Afghanistan to try and take control and maybe get in the way of China’s BRI project.

    Only 16 countries recognise Taiwan – tells you how much power the US has today.

    140 countries have China as their largest trading partner, so if countries have to pick a side it might not be the US.

    Which country has the best value proposition FOR THE PEOPLE – China builds huge amounts infrastructure including skyscrapers and G5 telecommunications. The US sells over priced military weapons that will most likely never be used.

  2. I don’t know how to assess the cost to Americans if the dollar loses it’s primacy. I do think this sanctions business was created, in part, to do just that. The real fight is with the Central Banks. Usury must end, and the way to do it is nationalize the FED. Imagine the growth if we did not have to pay the 6 families a half trillion dollars in interest this year. That is 50% of our budget, and for what? Wars would end in a heartbeat. Real value would come back.
    A legitimate audit would lead to their downfall. There’s trillions unaccounted for.

    • Once a country’s debt is higher than their GDP it cuts into economic growth so that is problem number one.

      China buys all of its oil from Russia and Iran using yuan, I doubt it pays for any energy in US dollars.

      The whole point of the euro was to use it to buy oil and other energy. The Nord Stream 2 gas pipeline from Russia to Germany is as strategic as it gets, obviously they will be doing trade using euros. Ukraine will get thrown under a bus, nothing the US can do about it.

      So yes a large chuck of the world is now bypassing using the US petrodollar to pay for its energy- largely brought on by the US sanctioning too many countries who can easily just work together.

  3. It was the height of arrogance for the US to sanction German companies working on the Nord Stream 2 pipeline, supplying Russian natural gas to Europe. The trajectory is for a Eurasian trade zone completely devoid of US dollar usage. Europe flips east, US trade import prices double or triple; a de facto US dollar devaluation.

  4. This is excellent news. The rest of the world needs to tell the gangsters in the U.S. run by Israel, to shove it! It was a big big mistake to allow the virtually worthless dollar to be the primary trading currency anyway. It has been rendered virtually worthless anyway due to blind borrowing and printing of fake money. All countries of the planet should boycott Israel and the U.S. until they learn to behave like civilized citizens of the world. Trump is evidently so stupid he fails to understand others can play his game too.

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