Russia, China eliminate use of Western currencies in trade
(MENAFN) Russia and China have largely eliminated the use of Western currencies in bilateral trade, with almost all transactions now conducted in rubles and yuan, Russian Finance Minister Anton Siluanov stated on Tuesday, according to reports.
Siluanov said that 99.1% of settlements between the two countries now occur in their domestic currencies, allowing both nations to avoid “unfriendly foreign infrastructure” tied to dollar- and euro-based banking systems.
"Previously, payments were in dollars and euros, with funds passing through Western banks that at some moment could stop these settlements," he added at the 11th Russian-Chinese Financial Dialogue in Beijing.
Earlier estimates from the Russian government suggested that 90–95% of trade was conducted in local currencies, meaning the current figure represents a further increase. Siluanov noted that the next goal is to “lock in the achievement” and expand economic cooperation even further.
The announcement coincided with a meeting between Russian Prime Minister Mikhail Mishustin and Chinese Premier Li Qiang in Hangzhou, where the leaders discussed ways to deepen economic and energy ties.
Since the escalation of the conflict in Ukraine in February 2022, Russia and China have strengthened their economic partnership. Beijing has become a major purchaser of Russian oil amid Western sanctions. Both countries describe their relationship as a “strategic partnership without limits.”
Russia has repeatedly criticized Western sanctions as illegal and unilateral, asserting that the U.S. dollar has been used as a tool of “punishment.” In July, Foreign Minister Sergey Lavrov said this approach has undermined global trust in the dollar as a reliable medium of international payment.
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