Tuesday, April 24, 2018

Russia accepts Iran into the EEU while also extending oil for goods program meant to bypass the dollar

On April 24, Russia's Prime Minister Dmitry Medvedev announced that they had accepted Iran's proposal to join the Eurasian Economic Union (EEU).  And this comes just a few days after Russia extended a program with the Middle Eastern power to facilitate their year old oil for goods trade which was created so that Iran could completely bypass the dollar.

Russian Prime Minister Dmitry Medvedev has approved a draft interim agreement establishing free-trade zone between the Russia-led Eurasian Economic Union (EEU) and Iran. 
The corresponding order was published on Tuesday on the website of the Russian government. The agreement provides for the formation of a free-trade zone for certain goods and is subject to ratification, as it contains rules different from those stipulated by the Russian law. 
Talks between the two countries on a free-trade deal started three years ago but were repeatedly postponed. According to Russian Energy Minister Aleksandr Novak, who is also co-head of the Russian-Iranian Intergovernmental Commission, the agreement “will obviously trigger further development of our bilateral trade and expansion of investment cooperation.”Russia Today
With Iran, Qatar, and Venezuela all conducting oil trading outside the dollar, and Saudi Arabia on the cusp of being willing to sell their oil to China in Yuan rather than the global reserve, the next big step towards ending the Petrodollar system appears to be in play as trade in goods and commodities outside of just energy is beginning to ramp up.


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