Russia’s Largest Oil Company Ditches Dollar in New Oil Deals

Rosneft now seeking euros as the default option of payment

Russia’s largest oil company Rosneft has set the euro as the default currency for all new exports of crude oil and refined products, as the state-controlled giant looks to switch as many sales as possible from U.S. dollars to euros in order to avoid further U.S. sanctions against it.

As of September, Rosneft is seeking euros as the default option of payment for its crude oil and products, Reuters reported on Thursday, quoting tender documents the Russian firm has published.

“Rosneft has recently adjusted all the new contracts for export supplies to euros,” a trader at a company that regularly procures oil from Rosneft told Reuters, adding that buyers have already been notified of the change.

Rosneft is the biggest oil exporter from Russia, selling around 2.4 million barrels per day (bpd) of oil, according to Reuters estimates.

In the latest tender for a spot sale of 100,000 tons of Urals blend loading from the port of Primorsk at the end of October, Rosneft specifies that the default currency in the payment should be in euros, according to the tender document cited by Reuters.

The United States has not ruled out imposing sanctions on Rosneft over its involvement in trading oil from Venezuela. Rosneft has been reselling the oil from the Latin American country to buyers in China and India and thus helping buyers hesitant to approach Venezuela and its state oil firm PDVSA because of the U.S. sanctions on Caracas, and, at the same time, helping Venezuela to continue selling its oil despite stricter U.S. sanctions.

In August, Rosneft told customers that oil product sales in tender contracts will be priced in euros instead of U.S. dollars, trading sources told Reuters back then.

Rosneft’s move was seen by traders and analysts as a future hedge against potential new U.S. sanctions on Russia and/or its oil industry.


  1. […] Largest Oil Company Ditches Dollar in New Oil Deals by Tsvetana Paraskova for Oil […]

  2. Vish says

    DeDollarization is America’s worst nightmare, as it would signal the end of America’s ability to suck the financial blood of the world through the US Dollar reserve currency.

    America is a global vampire nation, whose precious US Way of Life and wealth are premised as being a global financial parasite through the system of American Dollar Imperialism.

    De-Dollarizing the American Financial Empire

    America: Host Or Parasite?

  3. rpdiplock says

    Putin and the Russian Administration are pussyfooting around too much with the rabid Western oligarchs. Putin needs to get some ‘mongrel’ in him because our ‘western’ administrations ONLY understand the proverbial power which comes from the barrel of a gun, in a manner of speaking. Russia, enough already with diplomacy, it is past time to do some head-kicking. My supposed ‘democratic’ government wouldn’t know what democracy was if it bit them on the arse.

  4. tom greg says

    So, Yanks, how does it feel to want to sanction a company but not be able to? Get used to it…things are changing!

  5. John C Carleton says

    Someone in Moscow must have insider information on the use by date of the fiat, not federal, No reserves, and not a “bank” counterfeit money.

  6. DarkEyes says

    Mr Putin is carrying out his promise he made around 2009 to get rid of the US Dollar to take away the facilities of blackmailing and sanctioning countries not agreeing with US policies.

    US, UK, France & EU had chosen the wrong candidate, I’d say.
    It is indeed happening. Good luck Russia with this good plan.

    It is to no avail to try and blackmail the Russian Federation with the current President, his Minister of Foreign Affairs and his Minister of Defense.

    Together they are too strong, for the liars.

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