Russia seeks to ditch US dollar, explores energy deals in euro, roubles

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Russia seeks to ditch US dollar, explores energy deals in euro, roubles

On Sunday, the 13th of October 2019, Russian Economy Minister, Maxim Oreshkin, said in an interview with the Financial Times that the natural resource-rich country had been contemplating an option to ditch US dollar for energy transactions, adding that the financial regulators of the transcontinental country stretching from eastern Europe to Northern Asia had been exploring currency settlements in roubles and euros for its energy exports in a bid to limit exposure to US dollar, which appeared to have become overvalued over the recent months, analysts suggested.

Adding that at some point Russian would look to supplant oil and gas sales either in roubles or in euros, Oreshkin had been quoted saying in the Financial Times' interview on Sunday (October 13th), "We have a very good currency, it’s stable.

Why not use it for global transactions? We want (oil and gas sales) in roubles at some point. The question here is not to have any excessive costs from doing it that way, but if the broad ... financial infrastructure is created, if the initial costs are very low, then why not?" Meanwhile, addressing to a growing popularity of Russian local bonds among foreign investors, who had been holding roughly 29 per cent of rouble debt, Oreshkin had also been quoted saying that Russia had launched a de-dollarisation attempt to reduce its exposure to an overvalued American currency and to offset impacts of a slew of US sanctions on its economy.

If truth is to be told, Russia had been grappling with an increasing pressure from Western European allies of Ukraine alongside the United States following its annexation of Crimea back in the 2014s.