On Monday, Russian First Deputy Prime Minister Andrey Belousov announced that Russia and China have now nearly completely phased out the use of all Western currencies in trade between the two nations, with almost all transactions being carried out in rubles and yuan.
Russia and China had been increasing the use of their own currencies in trade ever since the West sought to constrain Russia’s trade relationships by imposing sanctions designed to bar it from using Western financial mechanisms for international trade settlement. Belousov noted, that Russia and China are using one of the two nation’s currencies to settle trade obligations in 95% of all of their transaction, and as the trade relationship and cooperation between the two nations grows, so too will that percentage.
While giving a speech at a meeting of the Russia-China intergovernmental commission in Beijing, Belousov pointed out that the bilateral trade between Russia and China this year will beat the target of $200 billion which had been set, and by 2030 it may exceed $300 billion.
He also said that Russia and China have long been major trade partners, and their relationship is only deepening as the investment opportunities between the two countries expands.
The minister said, “New joint investment projects are being launched in priority sectors such as the automotive industry, mining and gas chemical industries, agriculture, logistics, IT sector and others.”
Following the pullout of Western companies from Russia due to the imposition of sanctions by the West, Chinese companies have exploited the opportunity, entering the Russian market, filling the niches left behind, as they expand their presence in Russia.
Belousov stated, “The withdrawal of Western companies from Russia has created vast opportunities for Chinese partners to take part in Russia’s in oil and gas, petrochemical and car manufacturing enterprises, as well as companies producing consumer goods, glass products, and construction materials.”
In the trade relationship, Russia has been supplying energy products such as oil and gas, as well as refined products, agri-food, and industrial products to China, while China has delivered everything from food, equipment, mobile phones, electronics, engineering products, furniture, toys, textiles, clothing, and footwear to Russia.
