Home Daily Blitz Russia Wants To Ditch US Dollar In Trade With European Partners

Russia Wants To Ditch US Dollar In Trade With European Partners


The following is an excerpt from rt.com | October 8, 2018 |

The Russian Ministry of Finance said on Monday it may shift to the use of local currencies with European trade partners. The move will be part of the so-called de-dollarization of the Russian economy.

“As we can see the main opportunity which can be realized in the short and medium term is the transition to settlements in national currencies with our European counterparts, including settlements involving the euro, and including for the delivery of our energy commodities,” Deputy Finance Minister Vladimir Kolychev told reporters.

According to him, such a decision would benefit Russia’s European partners in several ways.

“This would, on one hand, strengthen the euro’s position as a reserve currency, and on the other hand provide a sort of security for such [energy] deliveries if the US were to make some decisions affecting US dollar settlements for our banks and our large energy companies,” Kolychev said.

He suggested that transition to euro payments would be simpler because the euro is already a reserve currency, and it would be logical to expect interest in the idea from European companies.

Kolychev noted that companies facing sanctions already face difficulties in settling their foreign trade contracts due to the “peculiarities of currency control,” and that the use of the euro would help alleviate that problem.

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