Money & Finance › Currencies, the dollar & crypto › The petroyuan: pricing and paying for oil in yuan
Oil paid in yuan: Russia, Iran and the Saudi talks
Since 2022· Crisis or event
Fact, law or dataA rule, statute, definition or measured number.
Since 2022, sanctioned exporters Russia and Iran have sold much of their oil to China for yuan; Saudi Arabia has only discussed it.
See it on the Money & Finance map →How it works
After Western sanctions over Ukraine, Russia shifted crude sales toward China and India, settling China trade largely in yuan and rubles. China also buys most of Iran's oil exports, often relabeled as Malaysian, paid largely in yuan through small banks. In 2023 some Indian refiners paid for Russian cargoes in yuan. Saudi Arabia discussed yuan pricing with China in 2022, signed a yuan swap line in 2023 and joined mBridge in 2024, but still sells oil for dollars.
Why it matters
These trades are the petroyuan's real base: it works where the dollar is blocked, less so where sellers have a free choice.
Facts, rules and data
Russian and Chinese official statements, tanker-tracking data from firms such as Kpler and Vortexa, Reuters reporting, and US sanctions actions.
Debates and risks
How much Iran–China oil money actually moves in yuan versus barter or other channels, since the trade is deliberately hidden.
Connections (3)
▸Oil paid in yuan: Russia, Iran and the Saudi talks are the real-world test of The petroyuan: pricing and paying for oil in yuanFact, law or data
The connection
The petroyuan becomes real only when barrels are actually paid for in yuan. Russia's and Iran's sales to China are the largest such trades, showing it can work at scale between willing parties, while Saudi Arabia's caution shows its limits.
When and why
Since 2022, in trade among China, Russia and Iran.
How we know
Official statements and tanker-tracking data confirm the flows; exact currency shares are not published.
Debates and risks
Whether yuan oil trade grows beyond sanctioned sellers.
▸Oil paid in yuan: Russia, Iran and the Saudi talks grew as Russia and Iran dodged Financial sanctions and 'weaponizing' the dollarFact, law or data
The connection
US and EU sanctions cut Russian and Iranian banks off from dollar and euro payments and froze Russia's central-bank reserves. Selling oil for yuan to China, through Chinese banks outside US reach, became their workaround. US threats since late 2023 to sanction foreign banks that help Russia have slowed some payments.
When and why
Iran since US sanctions returned in 2018; Russia since 2022.
How we know
OFAC actions, Treasury statements, and reports of delayed Russia–China payments in 2024.
Debates and risks
Whether sanctions are speeding a lasting move away from the dollar, a cost critics say Washington underestimates.
▸Oil paid in yuan: Russia, Iran and the Saudi talks settle partly through CIPS: China's cross-border yuan payment system (2015)Fact, law or data
The connection
Yuan payments for oil can clear through CIPS, letting Russian and other banks pay Chinese counterparts without US correspondent banks. But big Chinese banks fear US penalties, so much of the trade moves through smaller regional banks, netting schemes or other channels.
When and why
From 2022, mainly in Russia–China trade; Iran-linked trade uses more hidden routes.
How we know
CIPS volume growth and press reports; transaction-level data are not public.
Debates and risks
How much oil money flows through CIPS rather than informal channels.