Thursday, 2003-10-09. Page 5
German Sources Say Russia Might Price Its Oil in Euros
Combined Reports YEKATERINBURG, Ural Mountains -- Russia is increasingly looking at pricing oil sales in euros instead of dollars, reflecting the euro's 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 Schröder 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 world's largest natural gas reserves, would represent a major shift in the balance of currencies behind the world's 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.
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 Russia's trade out of dollars and into euros.
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. (Reuters, MT)
http://www.themoscowtimes.com/stories/2 ... 9/047.html
German Sources Say Russia Might Price Its Oil in Euros
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John S
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Europe Presses Russia on Euro
http://www.themoscowtimes.com/stories/2 ... 0/041.html
Monday, 2003-10-20. Page 5
By Lisa Jucca and Melissa Akin
Reuters
Prime Minister Mikhail Kasyanov, shown here with European Trade Commissioner Pascal Lamy, said only the market can decide how to price oil.
BRUSSELS, Belgium -- The European Union has held informal talks with Russia on its long-sought aim to have Russian oil exports priced in euros, European Commission President Romano Prodi said Friday.
"Russia is ... given its own national interest, drawn to having its imports and exports denominated in euros," Prodi told a news conference after an EU summit in Brussels.
But Prime Minister Mikhail Kasyanov said his government would not force the market's hand. He said it was up to exporters to decide if they should to stick to the dollar or buck the international energy markets and price oil in euros.
"This topic cannot even be discussed. There can be no administrative decisions here. The market decides," Kasyanov was quoted as saying by Interfax.
"Oil is a commodity that is traded for dollars, and if it's sold for dollars, it means that suits the buyers and the sellers."
President Vladimir Putin, traveling 10 days ago in Russia with German Chancellor Gerhard Schröder, said he would not rule out denominating oil exports in euros.
The remark raised hopes a long European campaign to make the euro a common currency in the region's energy markets might come to fruition and brought a favorable response from European Central Bank President Wim Duisenberg.
"I think it is a good idea for the euro as an international currency," Italian Prime Minister Silvio Berlusconi told the Friday news conference in Brussels.
But Putin's remarks may have been less a promise than a new bargaining chip in tough talks with the European Union on Russia's bid to join the World Trade Organization, blocked by Brussels, in part, over what it sees as unfair gas pricing.
"Putin's comments were framed in the context of the conversation he was having at the time with Schröder," ING emerging markets economist Phil Poole said.
"He was criticizing the EU on world trade issues, being fairly critical vis-a-vis Gazprom, that the EU is being unfair ... he wanted to throw something in that was more positive, that would appeal to European politicians."
The head of the European Commission's energy directorate, wrapping up talks with Russian officials in Moscow on Friday, declined to say whether the talks specifically covered redenominating oil exports in euros.
"We have been trying to convince our partners to use the euro in energy transactions," said Francois Lamoureux, in town with European Trade Commissioner Pascal Lamy, whose Thursday talks on Russia's WTO bid yielded no breakthroughs.
Lamoureux said the issue of euro-denominated exports was also crucial for European importers of Russian gas, who are on long-term contracts with Gazprom, supplier of a quarter of Europe's gas.
Some economists say Russia, which holds 75 percent of its reserves in dollars, would do well to diversify its foreign currency inflows. The bulk of Russian imports are in euros.
"Our companies buy lots of equipment from Europe in euros. Settling the accounts in euros would naturally be more agreeable," Energy Minister Igor Yusufov said in an interview with German newspaper Handelsblatt published Friday.
Still, oil companies have not spoken their minds on the issue. Poole of ING said that as long as the dollar reigned on energy markets, it could be a tough proposition for them.
Monday, 2003-10-20. Page 5
By Lisa Jucca and Melissa Akin
Reuters
Prime Minister Mikhail Kasyanov, shown here with European Trade Commissioner Pascal Lamy, said only the market can decide how to price oil.
BRUSSELS, Belgium -- The European Union has held informal talks with Russia on its long-sought aim to have Russian oil exports priced in euros, European Commission President Romano Prodi said Friday.
"Russia is ... given its own national interest, drawn to having its imports and exports denominated in euros," Prodi told a news conference after an EU summit in Brussels.
But Prime Minister Mikhail Kasyanov said his government would not force the market's hand. He said it was up to exporters to decide if they should to stick to the dollar or buck the international energy markets and price oil in euros.
"This topic cannot even be discussed. There can be no administrative decisions here. The market decides," Kasyanov was quoted as saying by Interfax.
"Oil is a commodity that is traded for dollars, and if it's sold for dollars, it means that suits the buyers and the sellers."
President Vladimir Putin, traveling 10 days ago in Russia with German Chancellor Gerhard Schröder, said he would not rule out denominating oil exports in euros.
The remark raised hopes a long European campaign to make the euro a common currency in the region's energy markets might come to fruition and brought a favorable response from European Central Bank President Wim Duisenberg.
"I think it is a good idea for the euro as an international currency," Italian Prime Minister Silvio Berlusconi told the Friday news conference in Brussels.
But Putin's remarks may have been less a promise than a new bargaining chip in tough talks with the European Union on Russia's bid to join the World Trade Organization, blocked by Brussels, in part, over what it sees as unfair gas pricing.
"Putin's comments were framed in the context of the conversation he was having at the time with Schröder," ING emerging markets economist Phil Poole said.
"He was criticizing the EU on world trade issues, being fairly critical vis-a-vis Gazprom, that the EU is being unfair ... he wanted to throw something in that was more positive, that would appeal to European politicians."
The head of the European Commission's energy directorate, wrapping up talks with Russian officials in Moscow on Friday, declined to say whether the talks specifically covered redenominating oil exports in euros.
"We have been trying to convince our partners to use the euro in energy transactions," said Francois Lamoureux, in town with European Trade Commissioner Pascal Lamy, whose Thursday talks on Russia's WTO bid yielded no breakthroughs.
Lamoureux said the issue of euro-denominated exports was also crucial for European importers of Russian gas, who are on long-term contracts with Gazprom, supplier of a quarter of Europe's gas.
Some economists say Russia, which holds 75 percent of its reserves in dollars, would do well to diversify its foreign currency inflows. The bulk of Russian imports are in euros.
"Our companies buy lots of equipment from Europe in euros. Settling the accounts in euros would naturally be more agreeable," Energy Minister Igor Yusufov said in an interview with German newspaper Handelsblatt published Friday.
Still, oil companies have not spoken their minds on the issue. Poole of ING said that as long as the dollar reigned on energy markets, it could be a tough proposition for them.
Re: Europe Presses Russia on Euro
The Americans start to realize the situation...
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Re: German Sources Say Russia Might Price Its Oil in Euros
It's a major event. Europe could get its energy at a stable price: oil and gas. Germany is already the main economical partner for Russia. Using the euro is a good thing for both Europe and Russia, which both need stability.John S wrote: A switch into euros by Russia, the second-biggest oil exporter behind Saudi Arabia and holder of the world's largest natural gas reserves, would represent a major shift in the balance of currencies behind the world's most traded commodity.
It's clearly their interest!John S wrote: 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.
Here is an article of the russian press on this topic:
http://top.rbc.ru/english/index.shtml?/ ... _bod.shtml
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