Local currencies dominate Russia-China trade – Putin aide

The yuan and ruble are now used in 90% of transactions between the two countries, Yury Ushakov says

Russia and China have brought the share of mutual trade settlements in the national currencies to 90%, Yury Ushakov, a senior foreign policy aide to Russian President Vladimir Putin, said on Thursday following a phone call between Putin and his Chinese counterpart Xi Jinping.

The official added that during the call the two leaders emphasized the importance of creating a reliable joint financial infrastructure.

“It has been stated that over 90% of settlements between our countries are carried out in rubles and yuan,” Ushakov told journalists after the conversation between Putin and Xi. 

“It was highlighted that it is important to continue working together to build a financial infrastructure that ensures reliable payments for the further steady development of trade and investment ties,” he added.

The heads of states also emphasized that Moscow and Beijing must continue to increase transport connectivity, modernize border infrastructure and checkpoints, and increase cargo transportation.

READ MORE: Abandoning dollar making electronic goods cheaper in Russia – Izvestia

In December, Russian Prime Minister Mikhail Mishustin said that Western currencies had nearly been completely phased out in trade between Russia and China, as almost all payments between the neighboring states are now carried out in rubles and yuan.

Russia and its trade partners began to switch to the national currencies in mutual trade after sanctions effectively cut Moscow off from the Western financial system. A growing number of nations are taking similar steps.

Find more stories on economy and finance in TROIB business