Russian Deputy Foreign Minister Andrey Rudenko spoke in a recent interview about Moscow’s strategic push to broaden the role of the ruble and yuan in energy trade. He emphasized that public officials are closely watching how closer integration of these currencies could influence the way energy products are bought and sold, signaling a shift toward greater use of domestic and regional financial instruments in long-term energy agreements.
According to Rudenko, the trend toward greater reliance on national currencies in agreements with China has gained momentum in 2022, continuing a trajectory that began earlier. He pointed to data suggesting a meaningful acceleration in the share of rubles and yuan in bilateral deals. This shift is framed as a move that could reduce exposure to external financial instability and provide more predictable pricing and settlement mechanisms for both sides in the energy sector.
Rudenko stated with confidence that the proportion of settlements conducted in national currencies would keep rising. He argued that this gradual expansion would bolster the sovereignty of bilateral agreements, reinforcing the economic autonomy of both partners. In practical terms, he suggested that adopting national currencies can help stabilize revenue streams and enhance the resilience of energy supply chains against global market swings, while facilitating smoother cross-border payments and hedging opportunities for producers and consumers alike.
The deputy minister underscored the importance of flexible trading arrangements. He noted that energy suppliers and buyers should have a range of viable options for settlement, including the use of rubles, yuan, and potentially other regional currencies. This flexibility is presented as a cornerstone of a more robust and diversified energy market where pricing and payment structures can adapt to changing economic conditions and geopolitical developments, rather than remaining tied to a single currency framework.
Historically, Russia has pursued enhanced currency cooperation and has highlighted efforts to broaden the use of the ruble in international trade. In tandem with Moscow’s policy aims, there have been public statements about expanding settlements in national currencies with key partners. A notable example cited is the ongoing collaboration with Iran, where the goal has been to increase the share of transactions settled in rubles and other national tender currencies. In 2021, the share of swaps settled in national currencies reached a notable level, and 2022 data suggests this momentum continued, reflecting a broader push to diversify financial channels and strengthen banking sector ties between the two countries. This approach is framed as part of a broader strategy to develop resilient financial infrastructures that support steady energy cooperation and economic exchange across borders, including continued cooperation on banking modernization, correspondent banking relationships, and risk management practices that align with mutual interests and regional stability.