China’s BRICS Gambit: Accelerating De-dollarization & Smuggling Russian Oil Past US Sanctions

BRICS nations double down on dollar defiance—while Wall Street still bets on greenback supremacy.

Xi's Petro-Yuan Playbook

China isn't just ditching the dollar—it's building the financial infrastructure to bury it. The petroyuan settlement system now processes 12% of Beijing's oil imports, with Russian crude deliveries jumping 47% since 2022 sanctions.

Sanction-Proof Supply Chains

Moscow's shadow tanker fleet has ballooned to 1,100 vessels, while Chinese refiners quietly pay premiums in yuan and dirhams. The US Treasury's response? Another round of strongly worded press releases.

Digital Currency Endgame

BRICS' planned blockchain-based payment system could launch by 2026—just as the Fed's real-time dollar rails hit delays. Because nothing says 'financial revolution' like government-backed crypto.

The bottom line: When the dust settles, traders will still price oil in dollars... from their offshore yuan accounts.

BRICS Currency, Oil in Yuan, and the US Dollar’s Shrinking Power

Central Bank Doubles Down on Yuan Strategy

China’s approach to BRICS de-dollarization received official backing when People’s Bank of China Governor Pan Gongsheng announced concrete measures at the Lujiazui Forum. The BRICS currency strategy now includes establishing a digital yuan internationalization center in Shanghai and also promoting yuan foreign exchange futures trading.

Pan Gongsheng had this to say:

Beijing’s de-dollarization push has been systematic, with three major Chinese exchanges allowing foreign institutional investors to trade 16 more futures and options contracts. The US dollar decline of over 9% this year contrasts with the offshore yuan’s 2% strengthening, while Russian oil trade in yuan settlements continue expanding.

Futures Markets Drive Global Influence

China’s role in BRICS de-dollarization extends beyond oil, with Shanghai, Dalian and also Zhengzhou exchanges expanding commodity access for international investors. Natural rubber, lead and tin contracts now support the BRICS currency strategy, increasing yuan influence in global pricing systems right now.

Zhou Ji from Nanhua Futures explained that these contracts increase yuan influence in commodity pricing, though this represents analysis rather than an actual official quote. China’s de-dollarization push includes allowing foreign currencies as collateral for yuan-settled trades, while the US dollar decline creates opportunities for Russian oil trade in yuan expansion.

Oil Trade Defies US Pressure

China’s rejection of US demands regarding Russian oil purchases demonstrates how China BRICS de-dollarization operates in practice. The BRICS currency strategy enables continued energy trade despite sanctions, with Chinese banks switching from dollars to yuan for emerging market lending due to lower costs.

China’s de-dollarization push received a $100 billion boost for Hong Kong businesses accessing yuan financing. Dan Wang from Eurasia Group noted accelerating efforts, stating:

She also observed increased yuan-denominated settlements between energy companies. The US dollar decline, driven by policy uncertainty, supports Russian oil trade in yuan growth as investors seek alternatives.

Swift data shows yuan at 2.89% of global payments versus the dollar’s 48.46%, but the China BRICS de-dollarization trend continues building momentum. The BRICS currency strategy creates systematic alternatives to dollar dominance, while China’s de-dollarization push provides emerging economies with new financing options. This US dollar decline acceleration, combined with expanding Russian oil trade in yuan, signals a shift in global financial architecture that challenges decades of American monetary hegemony.