What Happened: Russian oil company Rosneft has asked customers to use the euro as the default currency for naphtha purchases in a new spot tender in Russia's Far East ports, Reuters reported Aug. 14.
Why It Matters: Rosneft's shift from U.S. dollars to euros in Russia's eastern ports reflects the company's strategy of insulating itself from U.S. sanctions and diversifying its funding sources away from the U.S. currency. Although the United States has already placed some sanctions on Rosneft, Washington has yet to fully isolate the company from the U.S. financial system.
Background: Previous sanctions have restricted Rosneft's access to crucial technology, such as that used in the development of deep-water oil and gas deposits. However, the company remains concerned that the U.S. Congress could impose stricter sanctions on Russia and its vital oil sector.
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