Assessment: Thick as thieves. China and Russia have formed a economic partnership that will expedite trade between the two nations avoiding the US dollar …
One week ago, Shell quietly purchased Russian seaborne crude (at a record discount of $28.50) amid a self-imposed boycott by most other Western purchasers of Russian energy products, only to spark widespread populist outrage over its indirect funding of the Putin regime and prompting a vow from the largest European energy company to not purchase Russian crude any more.
As a result, Moscow has found itself in the crippling position where despite carve outs for its oil exports (Europe has vocally refused to join the US ban of Russian energy exports), not a single western major is willing to buy Russian oil over fears of public backlash, while Chinese banks are reportedly on the fence when it comes to providing letters of credit to shippers seeking to purchase Russian oil, in the process freezing Russia’s entire seaborne oil exporting industry.
“Then the sixth angel poured out his bowl on the great river Euphrates, and its water was dried up, so that the way of the kings from the east might be prepared.” Rev. 16:12
So fast forward to today, when in hopes of short circuiting the Chinese quasi-ban, Russian oil giant Surgutneftegaz (Surgut) has allowed Chinese buyers to receive oil without providing guarantees known as letters of credit (LC) in order to bypass Western sanctions, Reuters reported citing three people with knowledge of the matter said.Then the sixth angel poured out his bowl on the great river Euphrates, and its water was dried up, so that the way of the kings from the east might be prepared.
A letter of credit, which allows 30 days for payment and is backed by a bank, is seen as the strongest guarantee for both sides.
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