Russia is increasingly moving away from the US dollar in its trade with China and India. Over 90% of its trade with China is now conducted in national currencies, primarily rubles and yuan. Similarly, more than 50% of its trade with India bypasses the dollar altogether. This shift is part of Russia's broader "de-dollarization" strategy, prompted by Western sanctions following its invasion of Ukraine.
Trade between Russia and China has surged, reaching $240 billion in 2023, with economists forecasting further growth. The yuan's role in this trade has expanded significantly, with its share in Russian exports to China increasing from 0.5% in 2021 to 16% in 2022. In imports, yuan usage rose from 4% to 23% over the same period.
Russian banks have also embraced the yuan, holding $68.7 billion worth of yuan by December 2023—surpassing their dollar reserves. This growing reliance on the yuan underscores Russia's commitment to reducing its dependence on the US doll