Russian Finance Minister Anton Siluanov revealed that global oil payments are now increasingly shifting from using USD to Chinese yuan following tensions in the Strait of Hormuz.
The change comes as many countries begin to seek a more stable payment system that is less dependent on the US dollar.
According to him, geopolitical developments in recent years have prompted countries to use national currencies in energy trade.
In addition to China, several other countries are also reported to be increasingly active in using yuan to settle oil transactions, especially countries facing political pressure and economic sanctions.
The statement was made ahead of the New Development Bank Board of Governors meeting in Moscow on May 14-15. The meeting was held as the BRICS countries continue to strengthen efforts to reduce the dominance of the dollar in international trade and global financing.
Tensions in West Asia are among the main factors in the change after the conflict involving the United States, Israel and Iran has escalated since February.
The retaliatory attacks between the parties involved have increased the risk of global energy supply disruptions, particularly in the Strait of Hormuz, a major route for oil and liquefied natural gas exports from the Persian Gulf to world markets.
The situation has also raised concerns about the stability of the global financial system, which is overly dependent on the US dollar. At the same time, the use of the yuan in oil trading is seen growing as several countries seek alternatives to reduce the risk of sanctions and geopolitical pressure.
