(FiveNation.com)- Following US-led broad economic sanctions against Russia, many Russian goods, including fertilize and oil, previously produced for the Japanese and South Korean markets, are now being exported to China and India. A manager provided this information to the Russian Asian Union of Industrialists and Entrepreneurs named Wang.
According to Wang, the majority of member companies settle cross-border trade in yuan, a Chinese currency, as opposed to dollars or other currencies because it is both quicker and more useful,
A rising number of Russian businesses “are trying to open accounts at branches of Chinese banks in Moscow,” according to anonymous government-approved sources who spoke to the Global Times on Tuesday. Yuan settlement has grown popular in the Russia-to-China trade.
The newspaper noted that some Russian traders accept payment in yuan and then utilize the currency to buy Chinese items.
The Changzhou-based Purefine Wood Trade Agency, according to a spokesman, is importing wood from Russia and basically using yuan or ruble settlement instead of using US dollars.
The spokesman stated that Purefine Wood Trade Agency is also considering exporting commodities, such as electronic and mechanical equipment, to Russia.
He said the exports are very well-liked in Russia and have huge market potential.
The Global Times argued in an editorial piece that was published on June 20 that the group of emerging economies known as BRICS, which stands for Brazil, Russia, India, China, and South Africa, should “urgently” push its members to conduct bilateral trade using local currency settlements rather than deals based on the “hegemony” of the U.S. dollar.
The journal published by the Chinese Communist Party stated that if they can achieve that goal, other developing nations will also participate in them when it comes to constructing alternative financial infrastructure in reaction to the US sanctions.
As a result of Moscow’s decision to start a war with neighboring Ukraine, the U.S. government and its allies began imposing severe financial sanctions on Russian firms on February 24. Moscow is looking for alternative economic opportunities, particularly in China and India, due to the financial sanctions campaign against Russia that Washington is spearheading. According to reports by the Times of India and Reuters, New Delhi, like Beijing, has recently urged Russian businesses to use the rupee as the primary currency for commerce with Indian companies.