Russia's ruble transactions increase in foreign trade

5/21/2024 7:52:02 AM

(MENAFN) Data from Russia's central bank indicates a steady increase in the share of ruble transactions in the country's foreign trade, particularly with Europe, reaching record highs in March.

In March, the utilization of the Russian currency in settlements for goods and services exported to other European countries surged to 58.5 percent. This signifies a substantial rise compared to the previous year, with the ruble's share escalating by 10.8 percentage points annually and 9.6 percentage points month-on-month.

Export figures from the Federal Customs Service reveal that European exports in the first quarter of this year comprised 15.2 percent of Russia's total goods exports, amounting to USD15.4 billion.

Commenting on this trend, Aleksandr Firanchuk, a senior researcher at the Russian Presidential Academy of National Economy and Public Administration (RANEPA), highlighted the ongoing increase in the ruble's share in transactions with Europe, underscoring the region's significance, which also encompasses Belarus, a vital trade partner.

Vasily Solodkov, director of the HSE Banking Institute, attributed the growth in ruble transactions to the challenges posed by Western sanctions, particularly in settlements with EU countries using euros and other currencies.

Experts also pointed out the introduction of a ruble-based gas payment mechanism as a contributing factor, potentially leading to a shift in payments for gas supplies to Europe being conducted in rubles.

The Bank of Russia provided comprehensive statistics on trade with various regions, including Asia, America, Africa, the Caribbean, and Oceania. Notably, the most substantial increase in the ruble's share in March occurred in payments from African countries for Russian goods.

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