Russia and China have long been withstanding pressure exerted by other countries. However, China started considering rubles or yuan as payments for Russian gas and oil only some weeks ago.
Notably, according to Russian mass media, the countries have been using rubles in trade for 10 years already. However, Russia launched the de-dollarization process several years ago, whereas China is still hesitating. Only now, when sanction fever against Russia has hit its peak, China’s Ministry of Foreign Affairs admitted the possibility of switching to rubles or yuan in payments for Russian energy resources. Representatives of the Ministry of Foreign Affairs pinpointed that market participants were free to choose the currency in bilateral settlements. Commenting on the possibility of transaction to rubles or yuan, officials said that the use of national currencies in the trading process would allow the parties to avoid currency risks and reduce the costs associated with currency exchange. Meanwhile, private Chinese companies are going to make a wider use of rubles or yuan in trade with Russia on an equal and mutually beneficial basis, taking into account the market changes. In other words, China is ready to switch to rubles if it is able to boost its income and avoid possible sanctions. In addition, Syria, another strategic partner of Russia, may also start considering payments for energy resources in national currencies.
