Russian President Vladimir Putin has stated that Moscow and Beijing plan to use their own national currencies more often in trade deals in lieu of dollars amidst Russia’s deteriorating relations with the West.
“The Russian and Chinese sides confirmed their interest in using national currencies more actively in reciprocal payments,” Putin told reporters on Tuesday during a press briefing with Chinese Leader Xi Jinping after talks at the Eastern Economic Forum (EEF) in the Russian city of Vladivostok.
“This step would help increase the stability of banks’ servicing of export and import operations while there are ongoing risks on global markets”, he told the journalists.
The decision came as a consequence of harsher sanctions placed on Russia by West and Kiev by annexing Crimea in 2014 and backing separatist rebels in eastern Ukraine.
The United States has subsequently imposed further sanctions following Russian interference in the presidential elections and the poisoning of ex-double agent Sergei Skripal and his daughter in Britain.
Owing to this, Russia is increasingly looking to China for investment whereas China is seeking allies amid growing criticism of its militarization of the South China Sea and continued accusations of human rights breaches and unfair trade practices.
“Russia and China should work together on unilateral approaches to international problems and oppose trade protectionism”, President Xi Jinping informed the reporters.
Following the US sanctions and the threat of further measures, the ruble has dropped sharply in value against the dollar and euro.
On the other hand, the yuan has fallen steadily against the dollar in recent months.
