Russia and China have pushed their bilateral trade relationship close to a dollar-free model. Following a meeting in Moscow on May 8 with Chinese President Xi Jinping, Russian President Vladimir Putin said that almost all trade operations between the two countries are now being settled in rubles and yuan, according to Tass.
Putin said the shift was made possible by coordinated policy steps taken by both sides to move settlements into their national currencies. In his remarks, he stressed that the transition has reduced dependence on the U.S. dollar and the euro in cross-border trade. He stated that “almost all Russian-Chinese foreign trade operations are carried out in rubles and yuan”, describing the result as a stable framework for mutual commerce.
He added that this system is designed to be more resilient against pressure from third countries and less exposed to negative trends in global markets. The comments highlight how financial coordination between Moscow and Beijing has become a central pillar of their broader economic relationship.
Trade Volume Reaches Record Level
Putin said China remained Russia’s largest trading partner in 2024, with bilateral trade reaching a record $245 billion. He also noted that Russia is one of China’s major external trade partners, underscoring the scale and strategic weight of the relationship.
Beyond trade flows, Putin said around 90 priority Russia-China projects are either being implemented or prepared, with a combined value of roughly $200 billion. These projects span industrial production, transport, logistics, agriculture, and mining, pointing to a deeper level of economic integration beyond simple merchandise exchange.
Part of a Broader De-Dollarization Trend
The move toward local-currency settlement in Russia-China trade reflects a wider trend among BRICS countries and other economies seeking greater monetary independence. Support for settling trade in domestic currencies has grown as governments look to reduce exposure to sanctions risk, external financial pressure, and volatility tied to the global monetary system.
Against a backdrop of geopolitical friction and increasing uncertainty in international finance, the near-complete use of rubles and yuan in Russia-China trade is likely to be seen as another notable signal of changing payment patterns in global commerce.