Russia & China Ditch Western Currencies
The trade between Russia and China has significantly shifted away from Western currencies, with Russian First Deputy Prime Minister Andrey Belousov revealing that 95% of transactions are now conducted using rubles and yuan. This change is a direct consequence of Western sanctions on Moscow, prompting the two nations to rely more on their own currencies for trade.
Belousov highlighted this trend during a Russia-China intergovernmental commission meeting in Beijing, where he also projected that bilateral trade would surpass $200 billion this year, potentially reaching $300 billion by 2030. China remains a key trade partner for Russia, and the collaboration is expanding across various sectors, including automotive, mining, agriculture, logistics, and IT.
This shift has opened significant opportunities for Chinese companies in the Russian market, particularly as Western companies withdraw. Chinese firms are increasingly filling these gaps, especially in sectors like oil and gas, petrochemicals, car manufacturing, consumer goods, glass products, and construction materials.
The trade balance showcases Russia’s export of energy products, agri-food, and industrial goods to China, while China exports a diverse range of goods to Russia, including food, electronics, engineering products, furniture, toys, textiles, clothing, and footwear. This evolving trade dynamic illustrates the growing economic interdependence between Russia and China in the current global landscape.
