Russian gas giant Gazprom said on Tuesday that China would start paying for Russian gas in rubles and yuan instead of Western currencies, as Moscow seeks closer ties with Beijing following economic sanctions linked to the Kremlin’s war in Ukraine.

“A transition has been made to make payments for Russian gas deliveries to China in the countries’ national currencies – the ruble and the yuan,” Gazprom said. said in a press release after a videoconference meeting with the Chinese oil group CNPC.

“The new payment mechanism is a mutually beneficial, timely, reliable and convenient solution,” Gazprom director Alexei Miller said.

Miller added that the new metrics will “simplify the math” and “become a great example for other businesses.”

Amid war in Ukraine and deteriorating ties between Moscow and the West, Russia redirected gas exports to China with Gazprom saying in July that daily gas flows to China reached record levels.

Gazprom delivered 10.4 billion cubic meters of gas to China in the first six months of this year, according in the Vedomosti newspaper.

Russia insisted European countries paid for Russian gas in rubles soon after the start of the Ukrainian war, and has since reduced or stopped gas flows to many European countries.

AFP contributed reporting.