Russia and China have signed an intergovernmental agreement on the transfer of payments to national currencies - the ruble and the yuan. The document was signed by Anton Siluanov, Russia's First Vice Premier and Finance Minister, and Yi Gang, head of the People's Bank of China.
The agreement specifies that the payments will be executed by the VTB bank and China's Merchant Bank. According to Izvestia newspaper, until now Chinese banks were hesitant to work with businesses from Russia due to the differences in taxation legislation and the risk of being subjected to international sanctions. The experts claim that the current agreement will help significantly increase the trade volume.
It is reported that currently new mechanisms of mutual payments in national currencies between Russian and Chinese enterprises are being developed. Anatoly Aksakov, chairman of the State Duma committee on financial markets, explains that the parties have started working on the coordination of the national electronic payment settlement systems. According to the parliamentarian, in the coming years the share of payment settlements in rubles with China can grow from 10% to 50%.
In 2018 trade volume between the Russian Federation and the People's Republic of China amounted to 107 billion USD.
Earlier, News.ru reported that the Russian President Vladimir Putin suggested BRICS countries use more payments in national currencies.