In recent years, the landscape of foreign trade settlement has shifted noticeably as Russia diversifies its currency mix. The portion of payments for exports conducted in what are termed “hostile” currencies—primarily currencies subject to Western sanctions—fell from 87% in the previous period to 48% in 2022, according to the Bank of Russia’s press service, which reviewed financial market risk factors. This move signals a strategic push to reduce exposure to Western financial systems and to increase the resilience of trade finance under evolving global conditions.
Concurrently, holdings of the US dollar and the euro in import settlements contracted from 65% to 46%. The share of dollars and euros in Russia’s foreign settlements dipped below the 50 percent threshold for the first time since 2013, a year when the country observed 88.7% in exports and 70.5% in imports in these currencies. The retreat of these two dominant Western currencies reflects a broader shift toward more diversified and localized settlement arrangements, as well as responses to sanctions and policy adjustments aiming at financial autonomy in critical corridors of trade.
As the data set extends into 2023, the Russian ruble’s role as a trade currency gains traction. The share of ruble payments in export transactions reached 34%, marking a solid advance from earlier years. The trend mirrors a steady progression from the 2013 baseline, when the ruble accounted for a smaller slice of export settlements. This growth underscores a policy emphasis on building domestic liquidity channels and strengthening the ruble’s function in international trade dynamics, even as global financial linkages remain interconnected and complex.
Russian authorities have underscored the emergence of the Chinese yuan as a credible alternative for export payments in addition to the ruble. At the start of 2023, yuan settlements comprised about 16% of export payments, a notable increase from 0.5% recorded at the beginning of 2022. The yuan’s rising share reflects intensified cooperation with China and a shared interest in broadening settlement options beyond Western currencies, aligning with broader regional integrations and supply-chain realignments that prioritize stability and diversification.
In late February, a formal address to the Federal Assembly highlighted ongoing shifts in international settlements. The announcement emphasized that the ruble’s share in Russia’s international settlements had effectively doubled since December 2021, signaling a significant trajectory toward greater use of domestic currency in cross-border trade and a corresponding recalibration of risk profiles for external financing and settlement partners. This development sits within a wider global dialogue about currency resilience, monetary sovereignty, and the strategic role of local currencies in global value chains, especially for energy and commodity transactions where Russia maintains a substantial footprint.