Moscow : The share of RUB and CNY in Russia-China trade has nearly quadrupled in the last 4 years but is still only 18-19%. Further growth towards 64-67% seen in Russia-CIS trade might be politically favoured, but also seems to be constrained by the RUS-CN product mix, which from the Russian side is fuel-heavy on the exports and machinery-heavy on the imports
Media sources indicate that Russia and China are drafting a pact on the national currency transactions. While the details of this document have yet to be disclosed, it is clear that it will be aimed at boosting the role of rouble and yuan in the Russia-China trade. The move appears to be in line with the political preference by both countries to reduce the role of the US dollar in the economy. We would like to put this initiative in an economic context, focusing primarily on the Russian side of the deal.
