Since the United States and Europe hit Russia with a fusillade of sanctions that cut off Russian banks from the international financial system, Russia has been pondering on the available way possible to retain its strength.
The EU is currently designing another pact of sanctions, particularly on Russian gas and oil. However, banning Russian oil and gas to flow into Europe has been a hefty challenge to the EU’s level of dependence as the report shows, in 2020, the EU imported over 20% of its energy from Russia.
In response, Russia will start exporting the bulk of her oil and coal to China, paid in Yuan. According to the media outlet, citing Chinese consultancy Fenwei Energy information service, several Chinese firms used local currency to buy Russian coal in March. The first cargoes will arrive this month.
These will be the paid shipments to China paid in Yuan since the United States and EU imposed sanctions on Russia. Also, Russian crude sellers have offered Chinese buyers the flexibility to pay in Yuan.
Data shows that Russia was China’s second-largest coal supplier last year. Nearly half of the imports from Russia are metallurgical coal.
Chinese buyers are interested in importing more Russian supplies. However, logistics and financial barriers could ultimately cap the flow, the China Coal Transport and Distribution said last month.