Petrocurrency Russian Ruble: How to Sell Crude Oil for Rubles

Moscow, 25th September 2008
Definition of Petrocurrency
Petrocurrency is a convertible monetary unit of the state in which there is an active crude oil production and trading.
Major world’s petrocurrencies:
Russian Ruble (RUB)
Canadian Dollar (CAD)
Norwegian Krone (NOK)
US Dollar (USD)
Kuwaiti Dinar (KWD)

Moscow, 25th September 2008
Two steps towards trading of Russian crude oil in rubles
1. To ban the export of crude oil of Russian origin.
Results:
The growth of Russian and foreign investments into Russian companies that refine and use crude oil with the goal to increase the income related with utilization of Russian energy sources inside Russia;
The development of Russian industrial production and internal markets, improving of job market;
The strengthening of Russian ruble, improving of buying power and living standards of Russian citizen;
The destruction of comprador bourgeoisie that prefers to develop export operations and to keep the national currency cheap.

Moscow, 25th September 2008
Positive sample: United States of America
Average daily US statistics on crude oil on the week of August 22-28, 2008:
Production: 5,100 Thousand Barrels
Imports: 9,830 Thousand Barrels
Exports: 26 Thousand Barrels
So, United States are developing domestic markets by utilization of all produced and imported oil.
Exports of crude oil by private American companies is significantly limited, practically banned.
The U.S. government is NEVER involved in oil exports!
Two steps towards trading of Russian crude oil in rubles

Moscow, 25th September 2008

Moscow, 25th September 2008
Email from the US Department of Energy on the 8th September 2008
Dear Mr. Suzdaltsev:
Thank you for your inquiry concerning U.S. crude oil exports.
There are restrictions on the export of domestically produced crude oil.
Crude oil exports are restricted to: (1) crude oil derived from fields under the State waters of Alaska's Cook Inlet; (2) Alaskan North Slope crude oil; (3) certain domestically produced crude oil destined for Canada; (4) shipments to U.S. territories; and (5) California crude oil to Pacific Rim countries. The U.S. government is not involved in oil exports.
Within the Export Administration Regulations Database (http://www.access.gpo.gov/bis/ear/ear_data.html), you can find information on restrictions on crude oil exports and the exceptions to those restrictions in Part 754 - Short Supply Controls at: http://www.access.gpo.gov/bis/ear/pdf/754.pdf
Currently, all of the crude oil exported from the U.S. goes to Canada.
You can find data on U.S. crude oil exports by country of origin at: http://tonto.eia.doe.gov/dnav/pet/pet_move_expc_a_EPC0_EEX_mbbl_m.htm
I hope this information helps. Please contact us again if you need further assistance with energy data or statistics.
Jonathan Cogan
Energy Information Administration, [phone],
[email protected]

Moscow, 25th September 2008
Two steps towards trading of Russian crude oil in rubles
2. To make Russian ruble a major settlement currency for all domestic, export or import commodity deals made by people and companies – the residents of Russian Federation.
Results:
The growth of usage of Russian ruble as settlement currency around the world;
The growth of Russian ruble FX trading on financial markets;
Simplification of international settlements and increasing of profitability of Russian companies due to the elimination of expenses for currencies’ conversion;
Ruble strengthening to the level of reserve currency.

Moscow, 25th September 2008
Conclusion
It is necessary to make these two steps in establishing of crude oil trading for rubles in 2009 because it will help to Russian oil companies to escape the systemic risk related to the possible default of American financial system.
It will also provide the basis for achieving of the goal of Russian President Dmitry Medvedev to establish the Russian ruble as reserve currency.