Russian Oil Corporation Calls to Expand International Trade in Ruble, Yuan

Igor Sechin, the CEO of Russian energy company Rosneft and the Executive Secretary of the Russian Presidential Commission on the strategy of development of the fuel and energy industry and environmental safety, said Thursday that it is important to continue expanding settlements with China and third countries in rubles and yuans as it would multiply trade.

"It is important to continue to expand the practice of using yuans and rubles both bilaterally and in settlements with third countries. Of course, this requires the support of the Bank of Russia and the People's Bank of China, closer interbank cooperation and its practical focus on the implementation of specific projects. I am confident that the potential of this cooperation will result in a multiple increase in trade," Sechin told the Russian-Chinese Energy Business Forum in Beijing.

The Rosneft CEO emphasized that the modern model of the Chinese economy will be even more resilient to external shocks and will allow China to enter a new qualitative stage of development in the long term.

Furthermore, he explained that Russia aims to strengthen and deepen cooperation with China in the entire chain of creating value in the power industry and related areas, including technology, equipment supply and project financing.

"Russia keeps aiming to strengthen and deepen cooperation with the Chinese side in the entire chain of creating value in the power industry and related areas, including technology, equipment supply and project financing. I am convinced that the potential of our cooperation is enormous, and we are only at the beginning of the path of its implementation," Sechin expressed.

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According to Sechin, the most important area of cooperation between the countries is energy. Russia-China trade has grown to $660 billion over the past five years and energy accounts for more than 75 percent of exports to China. Russia has already supplied more than 75 million tonnes of oil to China in 2023, 25% more than over the same period in 2022.

The gas sector is also developing. The exports of Russian natural gas to China in 2023 will hit a new high to exceed 30 billion cubic meters.

"Russian-Chinese cooperation in the gas sector is developing dynamically. This year, Russian gas exports to China will reach a historical high – more than 30 billion cubic meters of gas will be supplied," he added.

Sechin noted that more direct investments in energy and related industries could become a news milestone of cooperation between the countries as a privilege for Chinese partners, for whom new opportunities are arising in the current environment. According to him, Rosneft's Vostok Oil project has the potential to have a stabilizing effect on the entire market of hydrocarbons against the background of a decline in investments in their exploration and production.

"Speaking about energy security in the long-term, we cannot fail to note that Russia is one of the few countries that prioritize investments in new energy projects. Here, I would like to mention the Vostok Oil project. With global investments in exploration and production declining, this world's largest new project in northern Siberia, with a resource base of 6.5 billion tonnes of oil, is almost the largest project in the world that can have a stabilizing effect on the entire market of hydrocarbons," the CEO explained.

Vostok Oil, Rosneft's flagship project located in Russia's Taimyr peninsula, includes already developed fields of the Vankor group and new fields in the north of the Krasnoyarsk Territory. The resource base of the project is estimated at more than 6 billion tonnes of liquid hydrocarbons.

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Sechin also highlighted the significance of ensuring the safety of Russia's oil supplies to China amidst the events in the Middle East. This is crucial because of the Eastern Siberia–Pacific Ocean (ESPO) oil pipeline through which Russian oil is being transported to China.

"Against the background of the current events in the Middle East, it is important to note the security of Russian oil supplies to China. This oil is being delivered through the ESPO pipeline, which in the current situation seems to us to be a much more reliable transportation route than tanker transportation through the Strait of Hormuz or the Suez Canal due to the growing geopolitical instability of these regions," he pointed out.

The fifth Russian-Chinese Energy Business Forum (RCEBF) opened on Thursday in the capital of the People's Republic of China, Beijing, and is scheduled to last for two days. According to the Russian President Vladimir Putin, the forum helps to promote beneficial cooperation between both countries and provides a direct constructive dialog with the representatives of government agencies, business and expert communities.