Russia, China Creating New Payment System Disconnected from World Banks

Russian Deputy Prime Minister Alexander Novak on Tuesday said Russia and China are working to avoid the use of SWIFT.

From TASS:

Novak recalled that payments under contracts for gas supplies from Russia to China are already switching to the national currencies of the two countries. Besides that, settlements for supplies of oil, petroleum products and coal are being actively transferred in rubles and yuan, he added.

"Such work makes it possible to prevent risks and promote the transition of the ruble and yuan into the status of world reserve currencies. In this regard, the Central Bank of Russia and the Bank of China are working on the possibility of opening accounts for Russian companies in China, Chinese companies in Russia, and creating a payment system without using SWIFT," the Deputy Prime Minister said.

Novak added that Russia and China also plan to jointly develop the production of equipment for the energy sector.

"Today, China is one of the key manufacturers of equipment in the oil and gas sector. There is already close cooperation on supply of oil and gas equipment for projects in Russia," he stressed.