In a significant move aimed at undermining the global financial dominance of the United States, President Vladimir Putin has confirmed that trade between Russia and China is now almost entirely conducted in rubles and yuan. This de-dollarization strategy represents a major pillar of their expanding economic and strategic partnership.
This shift away from the US dollar has been a point of concern for American policymakers, particularly during the Donald Trump administration. By settling trade in their national currencies, Moscow and Beijing are actively reducing their vulnerability to US financial leverage and sanctions, while simultaneously promoting the international profile of the yuan and the ruble.
The move is part of a broader collaboration that has seen trade between the two countries skyrocket. Putin highlighted that commerce has expanded by around $100 billion since 2021, making China Russia’s top trading partner. This economic interdependence provides a solid foundation for their joint political initiatives on the world stage.
This financial alignment is coupled with a shared political agenda, particularly their opposition to sanctions they deem discriminatory. As leaders gather for the SCO summit, this united front against the dollar-centric financial system and Western economic pressure will be a key theme, signaling their intent to build alternative global structures.
