Yuri Kobzar17:54, 01.12.23

The Kremlin’s dreams of turning the ruble into an alternative to the dollar and euro remain just dreams.

Nobody needs the Russian ruble on the international market. Only Russia itself uses it in trade operations, and even then mainly to circumvent Western sanctions. This conclusion suggests itself from the review of market risks published by the Central Bank of the Russian Federation.

Thus, the share of the ruble in payment for Russian exports is now about 40%, which is 10-15% more than the pre-war level. Russian imports are paid for in rubles by 30%, which corresponds to pre-war indicators. But in transactions not directly related to Russian imports/exports, virtually no one uses the ruble.

“The role of the offshore ruble market is increasing, but so far remains limited,” says the review of market risks, which, according to the rules of Russian “newspeak”, is called the “Financial Stability Review.” 

It also follows from the report that foreign banks and companies seek to immediately exchange ruble proceeds from trade operations with Russia into another currency and often do this within the Russian financial system. Those. wash foreign currency out of it.

The situation in the Russian economy – latest news

As UNIAN wrote, the largest oil and gas Russian companies’ revenues have almost halved . The introduction of a price ceiling on Russian oil and petroleum products led to a reorientation of export flows to Asia and Africa.

We also told you that China is putting pressure on Putin regarding the implementation of the Power of Siberia – 2 project. Beijing insists on the profitable construction of the common gas pipeline, but wants sanctioned Russia to fully cover all costs.

(C)UNIAN 2023