The Russian ruble and the Chinese yuan make up an awesome tandem! Curiously, being well-established trade partners, Russia and China have boosted the share of trade settlements in their currencies up to 90%. In other words, the ruble and the renminbi are linked in global trade. But how long will this tandem last?

According to Russian President Vladimir Putin, payments in the national currencies nowadays reach an impressive 90%. The lion's share of bilateral settlements between Russia and China is carried out in the ruble and renminbi. The Russian president underscored this achievement during talks with Chinese President Xi Jinping.

The Russian leader acknowledged that China has become Russia's key trading partner. "Settlements in national currencies have given an impetus to the expansion of trade activity between the countries. Now it is important to determine the direction our relations will develop further. Mutual trade is in the interest of both the Russian and Chinese economies. I am confident that all planned activities will be implemented," Vladimir Putin added. 

Currently, Moscow and Beijing are engaged in almost 80 large joint investment projects. Experts reckon that trade between the countries has been expanding at a vigorous pace despite interference from third countries and an adverse geopolitical environment.

On the flip side, Chinese financial institutions have begun phasing out contacts with Russia since the beginning of 2024. The reason is the imposition of sanctions by the US Treasury against banks from third countries that help sanctioned organizations or facilitate the supply of dual-use products. In this context, some financial institutions have tightened supervision and others have stopped accepting payments from Russia in any currency.

Chinese banks fear secondary US sanctions. Therefore, about 50% of transactions from Russia to China are currently conducted through intermediaries from third countries. Among such intermediaries are legal entities from Hong Kong, Kyrgyzstan, Kazakhstan, the United Arab Emirates, and other jurisdictions. However, there are pitfalls here. Risks include high fees and the likelihood of cargo confiscation. The advantages of this scheme are the absence of long payment delays and timely cargo loading.