China and Russia Prepare Payment System without SWIFT

Russian Deputy Prime Minister Alexander Novak told the Russian-Chinese Energy Business Forum on Nov. 29 that China and Russia are in the midst of formulating a payment system that will help avoid dependence on SWIFT. Novak revealed that the process to switch to another system had already begun, with payments under contracts for gas supplies from Russia to China being made in their national currencies. “In gas contracts we are already switching to settlements in national currencies—in rubles and in yuan—on an equal basis. Supplies of oil and oil products, coal are also being switched to payment in national currencies,” Interfax reported. “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 People’s 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,” he said.