The shift enables the two countries to avoid the “unfriendly” Western banking system, Anton Siluanov has said

Russian Finance Minister Anton Siluanov. ©  Vladimir Pesnya/Epsilon/Getty Images

Russia and China have essentially eliminated the use of Western currencies in trade, with almost all payments now carried out in rubles and yuan, Russian Finance Minister Anton Siluanov stated on Tuesday.

According to Siluanov, 99.1% of settlements between the two countries now take place in their own currencies. He added that this enables Russia and China to avoid “unfriendly foreign infrastructure” linked to the dollar- and euro-based banking systems.

”Previously, payments were in dollars and euros, with funds passing through Western banks that at some moment could stop these settlements,” Siluanov said at the 11th Russian-Chinese Financial Dialogue in Beijing.

This marks an increase from earlier Russian government estimates, which put the share of settlements from 90% to 95%. Siluanov added that the task now is to “lock in the achievement” and further expand cooperation.

 

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The announcement came as Russian Prime Minister Mikhail Mishustin met with Chinese Premier Li Qiang in Hangzhou, where they discussed deepening economic and energy ties.

Russia and China have intensified cooperation since the escalation of the Ukraine conflict in February 2022, with Beijing becoming the main buyer of Russian oil after the West imposed sweeping sanctions on Moscow. The two nations describe their relations as a strategic partnership “without limits.”

Russia has denounced the Western sanctions as illegal and unilateral, arguing that the US dollar has been used as a tool of “punishment.” In July, Foreign Minister Sergey Lavrov said the approach has eroded global trust in the dollar, once considered a reliable means of international payment.