• 23 Jun, 2024

90% of trade between Russia and China is done in local currency – President Putin

90% of trade between Russia and China is done in local currency – President Putin

The president says the decision to switch primarily to rubles and renminbi was "timely" and led to a major upturn in trade.

President Vladimir Putin has said that the majority of trade between Russia and China is now done in local currencies, bypassing the US dollar.

During a meeting with  Chinese President Xi Jinping in Beijing on Thursday, President Putin praised the deep level of cooperation between the two countries, especially on trade.

Relations between Russia and China are based on "the principles of mutual respect, good neighborliness and mutual benefit," Putin said. He said that despite the coronavirus pandemic and "several measures aimed at limiting the development of our country" by third countries,  both countries have built strong investment portfolios in various sectors. , added that trade volume has been steadily increasing.

“Our timely joint decision to ensure that trade is carried out in national currencies has provided a strong impetus to expand trade flows,” the Russian president said. 90% of this is done in rubles and renminbi." According to President Putin, the volume of trade between Russia and China increased by about 25% in 2023 to $227 billion.

President Putin is making a two-day state visit to China, his first overseas trip since assuming his fifth term as president earlier this month. Leaders and senior officials from both Russia and China are scheduled to hold talks on a wide range of topics, including bilateral relations, economic cooperation, and international affairs, including the conflict in Ukraine.

The Russian president  said that Russia has never sought to "de-dollarize" its domestic or international economy, but that this process is "inevitable." President Putin has particularly criticized the United States' use of its currency as a "military tool," saying it undermines global trust.

After the  Ukraine conflict began in February 2022, the United States blocked Russian central bank dollar transactions and subsequently banned the export of dollar bills to the country. President Putin criticized the U.S. restrictions as "utter stupidity" that would only weaken America's power and economy.