The share of the ruble in Russia’s foreign trade operations continues to grow while payments in the currencies of ‘unfriendly’ states is declining, Russian President Vladimir Putin said on Friday, addressing a plenary session at the St. Petersburg International Economic Forum (SPIEF).
The term ‘unfriendly’ refers to countries which have imposed severe financial sanctions on Russia in response to the conflict in Ukraine.
“Last year, the share of payments for Russian exports in the so-called ‘toxic’ currencies of unfriendly states decreased by half. At the same time, the share of the ruble in export and import transactions is growing, it is now approaching 40%,” Putin said. He also noted that the share of the Russian currency in international payments has tripled since 2021.
Russia actively began replacing the dollar and the euro in foreign trade amid Western sanctions imposed over the Ukraine conflict. It has since dramatically reduced the number of bank accounts and transactions between companies and financial institutions involving Western currencies. Prior to the conflict, the share of the US dollar and euro in Russia’s settlements was around 90%.
According to Putin, friendly countries currently account for three-quarters of Russia’s trade turnover.
Russia will continue to boost cross-border payments in national currencies with other states, the president said.
Putin also highlighted that the BRICS countries are developing their own payment infrastructure, independent of Western alternatives.
“The BRICS [nations] are working on setting up an independent payment system that is not subject to political pressure, fraud, and external sanction pressure,” the Russian president said.