President Vladimir Putin recently emphasized the importance of Russia cutting imports and increasing the use of non-Western currencies in trade settlements. He highlighted the significance of expanding the country’s domestic financial markets during his speech at the St Petersburg International Economic Forum. Putin pointed out that the trade with Asia has been on the rise, with almost 40% of Russian external trade now being conducted in roubles, as opposed to U.S. dollars, euros, and other Western currencies.
Putin also expressed the intention to enhance the usage of BRICS currencies in settlements. The BRICS group consists of Brazil, Russia, India, China, and South Africa. The Russian President indicated that the share of payments for Russian exports in unfriendly states’ currencies decreased significantly last year, while the utilization of the rouble in export and import transactions has been steadily increasing. Putin outlined the plan to increase the involvement of national currencies in foreign trade settlements, emphasizing the need to strengthen the security and efficiency of such transactions through collaboration within BRICS.
In order to achieve these goals, Putin mentioned the necessity for Russia to reduce imports by focusing on competitive production and increasing investments in fixed assets by 60% by the year 2030. Additionally, he highlighted the objective of doubling the value of the Russian stock market by the end of the decade, aiming for it to represent two-thirds of the country’s GDP.
Putin’s emphasis on reducing imports, diversifying settlement currencies, and expanding domestic financial markets reflects Russia’s strategic approach to strengthen its economic independence and resilience against external pressures. By prioritizing the use of non-Western currencies, increasing investments in local production, and boosting the stock market value, Russia aims to secure its position in the global economy and reduce reliance on traditional Western trading partners.