President Vladimir Putin signed an order establishing a special ruble-based mechanism for payments in the export of agricultural products. The intent is to shield trade from sanctions while boosting the domestic currency’s role in global commerce, a move noted by RIA Novosti. The decree sets in motion a system where settlements can be made through dedicated ruble accounts, with foreign buyers directing payments to these sanctioned-protected accounts. Banks then exchange the proceeds for rubles and complete the delivery payments, reinforcing currency stability for exporters.
Implementation is set to begin on a date announced by government authorities, with the full list of covered agricultural products to be approved within 30 days. The framework is designed to streamline payments and reduce exposure to external financial restrictions, aligning with broader efforts to diversify settlement currencies beyond traditional channels.
Analysts argue that this approach will lift demand for the ruble and broaden Russia’s trading partners with allied nations. The new scheme mirrors a precedent already applied in the gas sector, where settlements have increasingly used rubles and other domestic instruments to reduce reliance on third-country banking systems.
Georgy Svirin, a market expert with Finmir, described the development as enabling exporters to access foreign buyers more directly and with fewer bureaucratic delays. He noted that the mechanism minimizes exposure to sanction risk, offering a more predictable path for payments in cross-border transactions for agricultural goods.
Russia has been actively expanding its agricultural exports to regions including Africa, the Middle East, and parts of Asia. In the first half of the year, grain shipments to Africa showed substantial growth in value, and the share of settlements conducted in national currencies has been steadily rising in trade with EAEU members and China, suggesting a broader strategic shift toward currency diversification in trade finance.
President Putin highlighted the rising use of rubles and other domestic currencies in international transactions in statements from early June, underscoring a trend toward increased ruble liquidity in bilateral commerce with partners such as China. This momentum reflects a broader international move toward de-dollarization in certain trade circuits.
Observers point to the ongoing impact of sanctions on Russia and the importance of resilient payment ecosystems that can operate under financial pressure. By channeling cross-border payments through domestic financial infrastructure, the country aims to maintain supply lines for essential commodities, including staple agricultural products, even amidst external restrictions.
The broader policy objective is to reinforce financial sovereignty while keeping trade efficient for producers and buyers alike. Experts emphasize that success will depend on careful administration of the list of eligible goods, robust risk controls, and clear rules for currency conversion and settlement timing to avoid volatility in exchange rates.
Overall, the initiative signals a continuing shift in how Russia conducts its international trade relations. By leveraging ruble-based settlements and expanding currency diversity in payments, the country seeks to safeguard its agricultural sector against sanctions and strengthen its strategic autonomy in global markets, especially with partners that share an affinity for stable, predictable trade arrangements.