|
German Sources Say Russia Might Price Its Oil in Euros
YEKATERINBURG, Ural Mountains -- Russia is increasingly looking at pricing oil sales in euros instead of dollars, reflecting the euroâs growing role as a reserve currency, German government sources said Wednesday. "The question is taking on increasing significance," a person travelling with German Chancellor Gerhard Schroeder on an official visit to Russia said.A switch into euros by Russia, the second-biggest oil exporter behind Saudi Arabia and holder of the worldâs largest natural gas reserves, would represent a major shift in the balance of currencies behind the worldâs most traded commodity. European leaders have long expressed interest in seeing energy contracts priced in euros rather than dollars to promote the currency and boost price stability in the European Union. This in turn would hurt the stability of the dollar and put downward pressure on. Short term perhaps good for our balance of payments, but long term bad. Most energy contracts are settled in dollars, meaning that for European buyers, trade in gas and oil is subject not only to fluctuations in their market prices but also to variations in the value of the U.S. currency. In 1999, just after Vladimir Putin became prime minister, he laid out a proposal to move Russiaâs trade out of dollars and into euros. Vlad, our old friend. A Russian Energy Ministry official said he could not confirm the report. "We cannot confirm this information. No talks are taking place on the issue. The ministry draws up export timetables, but does not deal with financial issues on oil supplies," the source said. "I can say no more!" Posted by: Steve White 2003-10-09 |
| http://www.rantburg.com/poparticle.php?ID=19656 |