Russia has transitioned almost entirely to conducting trade settlements with India and China in national currencies, effectively bypassing the US dollar, TASS reported.

According to Deputy Prime Minister Alexander Novak, between 90 and 95 per cent of financial transactions with both countries are now executed in roubles, yuan, or rupees. The shift, he explained, was not a deliberate policy decision but rather a natural outcome of Western restrictions on Russian access to dollar-based systems.

According to Novak, the shift was not a political imposition but a pragmatic adjustment driven by market conditions and mutual trust between partner nations. The adoption of domestic currencies has made commercial operations more stable, limiting exposure to foreign banking systems vulnerable to sanctions or payment freezes.

In the energy sector, a major component of Russia's export structure, transactions have already adapted to this mechanism. A substantial share of crude oil shipments to India under long-term contracts is now denominated in rupees and occasionally settled via the Vostro account framework established between Russian and Indian banks.

Similarly, gas and coal trades with China are increasingly priced in yuan and roubles following agreements between Gazprom, CNPC, and other leading energy firms.

This diversification has also spread to sectors including fertilisers, machinery, and defence supplies, strengthening bilateral resilience and ensuring uninterrupted trade flows. The use of financial messaging systems independent of the SWIFT network has further anchored this transition, signalling a long-term restructuring of Russia’s external trade settlement architecture.

Novak noted during an interview with the Solovyov Live TV channel that market forces have effectively aligned to meet the demand for non-dollar transactions. Western sanctions have made it increasingly difficult for Russia to operate in the traditional global banking framework, prompting a currency realignment with key Asian partners.

He emphasised that transitioning to national currencies has not impeded trade or settlement efficiency between Russia and its partners. On the contrary, the move has strengthened economic resilience and accelerated the regional de-dollarisation trend.

The reliance on the rouble and alternative currencies is seen as part of a broader strategic pivot towards Asia, supported by India and China’s growing acceptance of bilateral currency mechanisms.

Based On TASS Report