Russia’s trade with key BRICS partners now almost dollar-free

95% of the country’s transactions with India and China were conducted in local currencies last year

National currencies were used in 95% of Russia’s trade with China and India last year, the secretary general of the International Chamber of Commerce (ICC), Tatiana Monaghan, revealed on Monday.  

According to the ICC, the share of the US dollar and euro in Russia’s export settlements has dropped dramatically, from 85.6% in January-December 2021 to 34.1% over January-May of last year.  

The use of the Russian ruble in cross-border transactions surged to 39.1% over the same period and settlements in currencies of so-called ‘friendly’ countries rose to 26.9%, the data showed.  

“95% of settlements in the Chinese and Indian directions in 2023 were carried out in national currencies. China has become Russia’s key trade partner accounting for 29% of the trade turnover,” Monaghan said.   

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.   

READ MORE: Russia-led trade bloc’s de-dollarization almost complete – PM

Exports from China to Russia have been growing rapidly in a range of areas in the past two years. Supplies of automobiles and other types of vehicles to Russia jumped by over 250% and were worth $22.2 billion, deliveries of technical equipment rose by more than 50% to reach $25.2 billion, while imports of electrical equipment and machinery grew by nearly 30% to $17 billion, data showed.   

The share of ‘friendly’ nations in Russia’s foreign trade exceeded 75% in 2023, according to the ICC.

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