Sanctions imposed on Russia are an answer to Russian transfer out of the petrodollar system. It was declared that Russia and China are going to settle payments for gas supplied using the western Altai pipeline in ruble and yuan.
According to Elena Burmistrova, CEO of Gazprom Export, the currency hasn’t been determined yet, because the sales contract has to be signed. The parties of this contract are going to discuss it and it is possible that payments will be settled in yuan and rubles. It is estimated that the western Altai pipeline will export 30 billion cubic meters of natural gas a year from Russia’s Western Siberia to North-Western China.
In October 2014, Beijing and Moscow signed a deal to strengthen the yuan and ruble and reduce dollar and euro dependency. And the upcoming deal for Russia to transfer too other currencies is a continuation of 2014 deal. In line with Russian business daily Kommersant, the Russian oil company Gazprom Neft has already agree to export 80,000 tons of oil from the Novoportovskoye field in the Arctic via the Eastern Siberia-Pacific Ocean pipeline and will only accept payment in Chinese yuan.
This gas arrangement between Russia and China will certainly stop the U.S. dollar hegemony as the world’s reserve currency.
The governments of Brazil, Russia, India and China have announced an alternative development bank since the total annual output of these four economies has risen to$29.6 trillion during the previous year. If other countries besides Russia and China drop the Petrodollar, it will undermine the dollar and collapse the status of US currency. The global elite’s response to this is to impose sanctions and increase military presence on the periphery of Russia. There is a possibility that Washington might enforce radical measures which consequently might lead to war between two nuclear superpowers.
The dissolution of the dollar might have even worse consequences.