95% of bilateral trade between China and Russia is settled in local currency

According to today's Russian television website on November 21st, Russian First Deputy Prime Minister Andrei Belousov stated that nearly 95% of bilateral trade between Russia and China is settled in rubles and Chinese yuan.
Experts explain that in the context of restrictions imposed by the West, Moscow and Beijing have started to use their own currencies more to replace the US dollar and euro, in order to minimize risks. Meanwhile, according to government estimates, the trade volume between the two countries will exceed $200 billion for the first time this year, and is expected to increase to $300 billion by 2030. Experts point out that Russia mainly supplies energy and agricultural products to China, while also purchasing cars, equipment, and electronic products from China.
Belovsov said, "The relationship between Russia and China is at an unprecedented high level and will continue to develop comprehensively. It is built on a solid foundation of mutual respect, equality and trust, non-interference in internal affairs, and promoting mutual development and prosperity
It is worth noting that from 2013 to 2014, only 2% to 3% of mutual trade between Moscow and Beijing was settled in domestic currency. In 2020, this indicator increased to 24% to 25% and reached 50% by 2022.
Vladimir Ilychov, Deputy Minister of Economic Development of Russia, said that against the backdrop of unprecedented sanctions imposed by the United States and the European Union, Russia and China are actively using their own currencies to replace the US dollar and euro.
Ilyichov pointed out in June this year, "Western countries have passed rounds of sanctions, reducing the number of interbank accounts, companies, and financial institutions that can be settled in US dollars and euros. Russian entrepreneurs are actively using the Chinese yuan and ruble through various schemes and combinations... We are now settling not only with China, but also with many other countries using the Chinese yuan."
Russian Finance Minister Anton Siluanov said, "Like Russia and China, other countries are also increasingly using their own currency or the currencies of friendly countries they trust for settlement."

Natalia Milichakova, senior analyst at the Russian Global Free Finance Corporation, said, "When it comes to settlements in Moscow and Beijing, many Russian banks have already disconnected from SWIFT (Global Interbank Financial Communications Association), so both sides are now settling trade in their own currencies through their own payment systems. At the same time, due to China's high demand for Russian energy, we see steady growth in bilateral trade."

According to statistics from the General Administration of Customs of China, the trade volume between China and Russia increased by 27.7% year-on-year from January to October this year, reaching 196.5 billion US dollars. Among them, China imported 106.4 billion US dollars from Russia, an increase of over 12%; China's exports to Russia reached 90.1 billion US dollars, an increase of 52%.
The Federal Customs Administration of Russia predicts that the trade volume between Russia and China will cross the $200 billion level this year, reaching approximately $215 billion to $220 billion. The government's evaluation is similar. Meanwhile, the Russian government does not rule out the possibility of a further 50% increase in bilateral trade volume in the next seven years.
Belousov said, "China is our key partner in trade and investment. Since the beginning of 2023, bilateral trade has increased by one-third. We estimate that by the end of this year, we will cross the threshold of $200 billion, which was originally planned to be achieved in 2024. By 2030, this number is bound to reach $300 billion."
Against the backdrop of various restrictive measures implemented by the United States and the European Union, and many European and American companies leaving Russia, the trade volume between Russia and China increased by over 29% in 2022, reaching a record high of $190.3 billion.
Belousov also said, "Due to the withdrawal of some Western companies from the Russian market, new opportunities for Chinese partners to participate in Russia's large oil and gas, petrochemical, automotive, consumer goods, glass, and building materials enterprises are beginning to emerge."