Publication Date : Wednesday 10 September 2014 21:41
Russia, China agree to trade more in ruble, yuan instead of US dollar
In response to Washington’s new sanctions against Russia, Moscow is planning to cooperate with China in order to use their currencies more in bilateral trade instead of the US dollar.
Russian Deputy Prime Minister Igor Shuvalov and Chinese Vice Premier Zhang Gaoli on Tuesday agreed an economic pact that included boosting use of ruble and yuan for trade transactions, Reuters reported.
"We are not going to break old contracts, most of which were denominated in dollars," Shuvalov said.
"But, we're going to encourage companies from the two countries to settle more in local currencies, to avoid using a currency from a third country," he added.
According to the pact, Russian banks will be allowed to set up accounts with Chinese banks, and Russian companies can seek loans from Chinese firms.
The move came after the United States and some European countries imposed sanctions on Russia, saying the Kremlin is supporting pro-Russian forces in Ukraine.
“Certainly, sanctions are a bad thing but it is a moment that we need to use for real work, for expanding partnership with Asia-Pacific countries,” Shuvalov said.
The Russian official also said Chinese firms' proposals to invest in more than 30 projects in Russia were also discussed.
The huge projects included building roads and bridges, resource development, agricultural production and transportation facilities.
In May, the two super powers signed a $400 billion gas supply deal. The agreement secured China that is the world's top energy user with a major source of cleaner fuel and it opened a new market for Russia.