(MENAFN) In a significant shift away from Western currencies, Russia and China have nearly completed the de-dollarization of their trade, with approximately 95 percent of transactions now conducted in their respective national currencies, according to Russian First Deputy Prime Minister Andrey Belousov. The move comes amid the backdrop of Western sanctions imposed on Moscow, prompting the two nations to expedite the use of the ruble and yuan in their trade interactions.
Addressing the Russia-China intergovernmental commission in Beijing, Deputy Prime Minister Belousov highlighted the remarkable progress in bilateral trade, asserting that it is on track to surpass the USD200 billion target for this year and could potentially reach USD300 billion by 2030. The increasing reliance on national currencies in trade reflects the deepening economic cooperation between the two nations.
Beyond the financial aspect, Belousov noted that China has emerged as one of Russia's major trade partners, with expanding opportunities for joint investment projects across various sectors. Key areas of collaboration include the automotive industry, mining and gas chemical industries, agriculture, logistics, and the IT sector.
The withdrawal of Western companies from the Russian market due to sanctions has created significant opportunities for Chinese companies to fill the void and expand their presence in Russia. Belousov emphasized that Chinese companies have actively taken part in Russia's oil and gas, petrochemical, and car manufacturing enterprises, as well as in the production of consumer goods, glass products, and construction materials.
The success of de-dollarization in Russia-China trade underscores the resilience of both nations in the face of external economic pressures. As they strengthen economic ties and diversify trade practices, the trajectory toward using national currencies is likely to continue, marking a transformative shift in the global economic landscape.
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