Tag Archives: Russia

China and Russia quit US dollar

Premier Wen Jiabao shakes hands with his Russian counterpart Vladimir Putin on a visit to St. Petersburg on Tuesday.ALEXEY DRUZHININ / AFP

St. Petersburg, Russia – China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.

Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.  “About trade settlement, we have decided to use our own currencies,” Putin said at a joint news conference with Wen in St. Petersburg.  The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.

The yuan has now started trading against the Russian rouble in the Chinese interbank market, while the renminbi will soon be allowed to trade against the rouble in Russia, Putin said. “That has forged an important step in bilateral trade and it is a result of the consolidated financial systems of world countries,” he said.  Putin made his remarks after a meeting with Wen. They also officiated at a signing ceremony for 12 documents, including energy cooperation.

The documents covered cooperation on aviation, railroad construction, customs, protecting intellectual property, culture and a joint communiqu. Details of the documents have yet to be released.

Putin said one of the pacts between the two countries is about the purchase of two nuclear reactors from Russia by China’s Tianwan nuclear power plant, the most advanced nuclear power complex in China.   Putin has called for boosting sales of natural resources – Russia’s main export – to China, but price has proven to be a sticking point.

Russian Deputy Prime Minister Igor Sechin, who holds sway over Russia’s energy sector, said following a meeting with Chinese representatives that Moscow and Beijing are unlikely to agree on the price of Russian gas supplies to China before the middle of next year.  Russia is looking for China to pay prices similar to those Russian gas giant Gazprom charges its European customers, but Beijing wants a discount. The two sides were about $100 per 1,000 cubic meters apart, according to Chinese officials last week.

Wen’s trip follows Russian President Dmitry Medvedev’s three-day visit to China in September, during which he and President Hu Jintao launched a cross-border pipeline linking the world’s biggest energy producer with the largest energy consumer.  Wen said at the press conference that the partnership between Beijing and Moscow has “reached an unprecedented level” and pledged the two countries will “never become each other’s enemy”.

Over the past year, “our strategic cooperative partnership endured strenuous tests and reached an unprecedented level,” Wen said, adding the two nations are now more confident and determined to defend their mutual interests.  “China will firmly follow the path of peaceful development and support the renaissance of Russia as a great power,” he said.

“The modernization of China will not affect other countries’ interests, while a solid and strong Sino-Russian relationship is in line with the fundamental interests of both countries.”  Wen said Beijing is willing to boost cooperation with Moscow in Northeast Asia, Central Asia and the Asia-Pacific region, as well as in major international organizations and on mechanisms in pursuit of a “fair and reasonable new order” in international politics and the economy.

Sun Zhuangzhi, a senior researcher in Central Asian studies at the Chinese Academy of Social Sciences, said the new mode of trade settlement between China and Russia follows a global trend after the financial crisis exposed the faults of a dollar-dominated world financial system.  Pang Zhongying, who specializes in international politics at Renmin University of China, said the proposal is not challenging the dollar, but aimed at avoiding the risks the dollar represents.

Wen arrived in the northern Russian city on Monday evening for a regular meeting between Chinese and Russian heads of government.  He left St. Petersburg for Moscow late on Tuesday and is set to meet with Russian President Dmitry Medvedev on Wednesday.

Agencies and Zhou Wa contributed to this story.


Russia to build nuclear power plant in Venezuela

Hopefully the Russians will build the same type of power plant they built for the Iranians.  Make sure to use Siemens Control Systems.  Amazing that Venezula would trust the Russians after what happened Stuxnet. visit our website:  TheCollectorsCoach.com or read on:

Fri Oct 15, 2010 8:57am EDT

* Russia to build Venezuela’s first nuclear power plant

* Rosneft to buy stakes in Ruhr Oel refineries for $1.6 bln

* TNK-BP (TNBPI.RTS) to buy some BP assets in Venezuela

By Alexei Anishchuk

MOSCOW, Oct 15 (Reuters) – Russia agreed on Friday to help build Venezuela’s first nuclear power plant and buy $1.6 billion of oil assets, reinforcing ties with President Hugo Chavez, who shares Moscow’s opposition to U.S. global dominance.

Chavez presided over the deals at a Kremlin ceremony with Russian President Dmitry Medvedev, who said the countries shared a “strategic partnership” and a vision of a world free of overwhelming U.S. influence.

“Both Russia and Venezuela favour the development of a modern and just world order — a world order in which our future does not depend on the will or desire of any one country, its well-being or its mood,” Medvedev said.

After the presidents’ talks, Russian nuclear agency chief Sergei Kiriyenko and Venezuelan Foreign Minister Nicolas Maduro signed a deal on “the construction and use of an atomic power station on the territory of Venezuela”.

Russia, which recently finished Iran‘s first nuclear power plant, has pushed to expand its presence on the global atomic energy market, and stresses other nations’ right to peaceful nuclear energy.

Medvedev hinted that Chavez’s foe, the United States, might not like the deal, but said it was peaceful.

“A deal in the atomic sphere has just been signed. I already know that it will make someone shudder. The president (of Venezuela) told me that there will be states that will have different types of emotions about this,” Medvedev said.

“I would like to underline that our intentions are clean and open: we want our partner the Bolivarian Republic of Venezuela to have a full range of energy choices, to have energy independence,” he said.

Chavez says Venezuela, South America’s biggest oil producer, needs nuclear power to reduce reliance on fossil fuels.

But he has also cast its efforts as a defiance of U.S. concerns. He said on Thursday in Moscow that “nothing will stop us” from developing nuclear power.


Chavez was on his ninth visit to Russia since taking office in 1999, making Moscow the first stop on a 10-day tour that will also take him to Ukraine and Libya as well as Iran and Belarus, whose ties with the United States are badly strained.

Russia has cultivated close relations with Chavez since Vladimir Putin, now prime minister, came to power in 2000.

Leveraging its ties with Venezuela into an energy foothold in Western Europe, Russia also secured a deal for its biggest oil company, Rosneft (ROSN.MM), to buy Venezuelan state oil company PDVSA’s stake in four German refineries.

State-controlled Rosneft said it would pay $1.6 billion for a 50-percent stake in the Ruhr Oel refineries, which PDVSA owns jointly with Britain’s BP (BP.L)(BP.N). [ID:nN14122078]

With a total capacity of 1.04 million barrels per day, the refineries are Venezuela’s biggest refining assets in Europe.

Under another deal signed in the Kremlin, Russia’s TNK-BP (TNBPI.RTS), half-owned by BP, will buy three of BP’s assets in Venezuela, one of TNK-BP’s billionaire shareholders, German Khan, told journalists. [ID:nN01215549]

The assets include stakes in two exploration and production joint ventures with PDVSA. BP’s Venezuelan assets are estimated to be worth $850 million to $1 billion.

There was no indication that Chavez’s visit had brought any new agreements to buy Russian weapons on top of at least $5 billion in arms deals concluded in the past five years.

Medvedev said Russia’s military cooperation with Venezuela was not slowing, but that their ties had broadened beyond the arms trade. He and Chavez signed a broad five-year plan for cooperation through 2014.

Medvedev called his meeting with Chavez “a meeting of friends” and thanked him for recognising the breakaway regions of Abkhazia and South Ossetia as independent states after Moscow’s 2008 war with pro-Western Georgia. (Additional reporting by Guy Faulconbridge, Jessica Bachman, Lidia Kelly and Al Kueppers; Writing by Steve Gutterman; Editing by Kevin Liffey)

Bolton claims Israel has only 3 days to strike Irans Bushehr Nuclear Plant

// // THE BUSHEHR nuclear plant in southern Iran will so
Photo by: AP

‘Obama won’t hit Iranian reactor’

08/17/2010 18:24

Bolton claims Israel has only 3 days to strike Bushehr plant.


Former US ambassador to the UN John Bolton said he didn’t see “any signs whatsoever that President Obama would make the necessary decision” to strike Iran’s nuclear reactor, speaking in an interview with Israel Radio Tuesday.Bolton claimed Israel has only three days to strike before Russia “begins the fueling process for the Bushehr reactor this Friday,” after which any attack would cause radioactive fallout that could reach as far as the waters of the Persian Gulf.   In an interview with Fox Business Network earlier Tuesday Bolton had said the deadline was eight days, but he revised it to three in the Israel Radio interview, saying Iran and Russia had announced they would begin fueling on Friday.

“It has always been optimal that military force is used before the fuel rods are inserted,” Bolton explained. “That’s what Israel did in Osirak in 1991, and when they attacked the North Korean reactor built in Syria.” Israel bombed the Osirak nuclear reactor in Iraq in 1981, and a Syrian reactor in 2007.  However Bolton didn’t see any indication that an Israeli strike was going to happen. “Obviously if Israel were going to do something it wouldn’t exactly be advertising it. But time is short.”

Bolton said that it would be “a much more dangerous world” if Iran were to gain nuclear capability. “That’s why I think it’s so critical. It won’t stop with Iran. Saudi Arabia, Egypt, Turkey, perhaps other states as well.”  Iranian nuclear chief Ali Akbar Salehi said earlier Tuesday that an attack on Iranian nuclear facilities would be an “international crime.”

In an interview with IRNA, Salehi said that the impact of such a strike would be global. “This is stipulated in the resolutions passed by the IAEA and the UN Security Council as well as in the resolution adopted at the close of the NPT Review Conference,” he stressed.  Russia, who is supplying the uranium fuel for the plant, announced last week that they will begin loading the Bushehr reactor on August 21.

In an initial interview earlier today with Fox Business Network earlier Tuesday, Bolton warned that once the Bushehr facility is operational it will be too late for a military air strike against Iran because such an attack would spread radiation and harm Iranian civilians.

“Once that uranium, once those fuel rods are very close to the reactor, certainly once they’re in the reactor, attacking it means a release of radiation, no question about it,” Bolton said.  “Iran will achieve something that no other opponent of Israel, no other enemy of the United States in the Middle East really has and that is a functioning nuclear reactor.”  Bolton was critical of Russia for aiding Iran in the fueling of the nuclear reactor.  “The Russians are, as they often do, playing both sides against the middle. The idea of being able to stick a thumb in America’s eye always figures prominently in Moscow,” Bolton concluded.