Russia, China completely abandon US dollar in bilateral trade, says Russian PM

Russian President Vladimir Putin and Chinese leader Xi Jinping (File photo) Photograph:(Agencies)

Russia and China have completely abandoned the use of Western currencies, including US Dollar, in their bilateral trade, said Russian Prime Minister Mikhail Mishustin on Tuesday (Dec 19).

While speaking during a meeting with his Chinese counterpart Li Qiang in Beijing, Mishustin said nearly all payments were being carried out in Rubles and Yuan.

The Russian PM is on a two-day visit to the Chinese capital.

“We continue to increase the share of national currencies in mutual settlements. If in 2020 this figure was about 20 per cent, then this year we have actually completely gotten rid of the currencies of third countries in mutual settlements,” Mishustin was quoted as saying by Russian media.

Red hot business ties

The Russian leader also stressed that the business ties between the two nations were booming, with bilateral trade turnover already reaching $200 billion ahead of schedule.

He also mentioned that a joint business forum held in Beijing earlier this year saw the attendance of more than 1,500 entrepreneurs from both countries.

“We are creating comfortable conditions for the work of commercial firms on the Russian and Chinese markets. We have an extensive joint agenda,” Mishustin said.

Li Qiang also noted that the partnership between Russia and China had become extremely important against the backdrop of “global turbulence.”

Russia urges BRICS to ditch the dollar

Apart from abandoning the US dollar in its trade with China, Russia is also urging the BRICS organisation to develop financial relations and make mechanisms for settlements within the bloc.

Russian Finance Minister Anton Siluanov made this appeal at the Russia-China Financial Dialogue forum in Beijing on Monday, where his Chinese counterpart Lan Foan was also present.

The BRICS group of emerging economies – which currently incorporates Brazil, Russia, India, China, and South Africa – has been discussing ways to facilitate payments in local currencies between member countries.

“We need to further develop financial cooperation within the BRICS countries. Here we see opportunities to develop a payments system that would be independent of the infrastructure, which does not always fully fulfill the goals of individual countries,” Siluanov stated.

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About Stu Turley 4195 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.