Russia’s Gazprom Neft Switches To Yuan For Aircraft Refuelling In China
Gazprom Neft, Russia’s third-largest oil producer and branch of Russian gas giant Gazprom, will switch from US dollars to Chinese yuan to cover aircraft refuel costs in China.
The Russian oil company, which operates in 34 airports in China, sealed the agreement with China’s national jet fuel operator.
“We are starting in September, and by the end of the year, we can transfer virtually all payments for aviation fuel in China to yuan,” Gazprom Neft Chief Executive Officer Alexander Dyukov told reporters at the Eastern Economic Forum on Friday.
Mr Dyukov added that Chinese airlines in Russian airports might soon purchase fuel with roubles. This is the first time the Russian-Chinese aviation fuel business will convert payments to their national currencies.
By 2025, Gazprom Neft and the Chinese operator aim to double the current volumes of aircraft fuelling in Russia and China to 250,000 tonnes.
Moscow has been promoting the rouble on the global financial market and pushing for it to become a form of reserve currency. Beijing is similarly pursuing a more significant international role for the yuan.
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