Energy Expert: Russia-China Deal '1st Battle of Petrodollar'

Friday, 30 May 2014 06:01 PM

By Courtney Coren

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
The natural gas deal signed by Russia and China marks "the beginning of the end" of the petrodollar, which is exactly what Russian President Vladimir Putin wants, says Marin Katusa, chief energy investment strategist for Casey Research.

"It's not going to go away abruptly overnight, but this is the first battle of the petrodollar, and the Americans have lost this round," Katusa told J.D. Hayworth on "America's Forum" on Newsmax TV Friday.

"This is a significant deal, and it's exactly what Vladimir Putin wants to do to the American dollar," he added.

Story continues below video.

Russia signed a long-term $400 billion deal to sell its natural gas to China on May 21.

It's a deal that Russia felt like it need to make to reduce its dependence on Europe as its customer base, especially in light of increasing sanctions over the conflict in Ukraine, Katusa explained. And China is also looking for "a true significant alliance" due to its own "brewing controversy" with Japan.

Katusa said that what was "more significant" in the deal is that "after this deal was signed, the president of China said, 'We need, we as in Asia, especially China, need a new security model that includes Russia and Iran.'"

The energy expert described it as "basically, a new United Nations that is Asian focused, that is not dominated by America and the Europeans."

And 48 hours later, Katusa explained, Russia also signed a deal with Iran to build up to eight nuclear reactors in the Middle Eastern country.

"We may look at it as an axis, but they’re looking at us as the axis. We're the old axis," Katusa said.

"It's important to understand that there's new boundaries, new alliances being drawn here and the new growth, where everything is going toward where China goes," he added. "The world economy is depending on China.

"Vladimir Putin and the Russians have situated themselves to provide the energy to the engine of future growth," Katusa said. "Do not underestimate what the Russians are doing right now. It is significant."

Related Stories:

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Rep. Erik Paulsen: Obamacare About to Hit Every American

Friday, 19 Dec 2014 18:41 PM

Minnesota Rep. Erik Paulsen says that every American is about to feel the effects of Obamacare when tax season hits in 2 . . .

FALN Victim's Son: Return 2 Cop Killers Living in Cuba to US

Friday, 19 Dec 2014 17:45 PM

Two cop killers brazenly living in Cuba must be returned to the United States now that new diplomatic relations have bee . . .

Gordon Chang: NKorea Didn't Act Alone in Cyberattack

Friday, 19 Dec 2014 16:58 PM

North Korea did not act alone in its devastating cyberattack on Sony Pictures, as President Barack Obama asserted on Fri . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved