Russia's Sibur switches to yuan for LPG settlements with China

(Reuters) - Sibur, Russia's largest liquefied petroleum gas (LPG) exporter, in 2022 switched fully to conducting financial settlements with China in yuan, Russia's state news agency on Wednesday cited a top manager at the company as saying.

"We trade with Vietnam in dong, in China last year we completely switched to yuan," RIA cited Pavel Lyakhovich, a member of Sibur's board, as telling the agency in an interview.

"We sell to Turkey in lira. But we will also master other exotic currencies."

It was not immediately clear whether all settlements with Vietnam and Turkey were also conducted in their currencies.

Sibur used to supply most of its LPG to the European market but since early 2022, demand for its products in northwest Europe has fallen due to Western sanctions against Russia's financial sector, which have complicated dealings with its energy companies.

The European Union imposed an embargo on the import of petroleum products of Russian origin from February this year but LPG was not banned. Many EU buyers, however, cut LPG purchases from Russia to avoid risk.

Other large LPG exporters, such as Gazprom, Rosneft, Lukoil and Tatneft have redirected their supplies away from Ukraine and Europe last year.

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