Russia and China hit the dollar by signing a 30-year contract to supply natural gas to China through a new pipeline with new gas sales being made in euros!

The agreement was signed in the context of strengthening Sino-Russian strategic cooperation amid tensions in Moscow‘s relations with the West over Ukraine and other issues.

Gazprom, which has a monopoly on Russian gas exports by pipeline, has agreed to supply Chinese state energy company CNPC with 10 billion cubic meters of natural gas a year, the Russian energy giant and a Chinese industrial source said.

Flows through the new pipeline linking the Russian Far East with northeast China are expected to start in two to three years.

Russia already supplies gas to China through the Power of Siberia pipeline , which began exports in 2019, and through liquefied natural gas (LNG) shipments.

Russian gas exports to China amounted to 16. 5 billion cubic metres in 2021.

“When the project reaches its full capacity, the supply volume will increase by 10 billion cubic meters and reach a total of 48 billion cubic meters per year,” including 38 billion cubic meters through the existing Power of Siberia pipeline, Gazprom said.

China‘s gas supply is based on long-term contracts. Chinese sources said the sales will be made in euros as part of China and Russia‘s efforts to diversify their trade from the dollar.

This is an action to de-legitimise and at the same time strengthen the euro as a reserve currency against the dollar.

At the same time they offer the EU something to “think about“. The strengthening of the euro against the dollar, a dream of years for Berlin and Brussels.

The Power of Siberia pipeline network is not connected to the network that supplies gas to Europe, which is facing reduced flows and soaring prices, which is one of the sources of tension with Moscow.