Russia’s growing push to reduce dollarization is reshaping Asia’s major energy and commodity corridors. On October 20, Russian Deputy Prime Minister Alexander Novak announced that the country had converted 90–95% of its trade settlements with China and India into national currencies—marking a significant shift away from dependence on the U.S. dollar. This move underscores a broader realignment in global finance as Moscow adapts to restrictions imposed by Western nations.
According to Tass, Novak explained during an interview on Solovyov Live TV:
“The market has naturally created a need for payments in national currencies. For example, with our friends in China and India, we have switched to using national currencies for about 90–95% of transactions.”
He added, “This happened spontaneously, without any specific goal, simply because payments in the previously dominant currency are no longer permitted.” The Deputy Prime Minister emphasized that this transition occurred organically—without direct state intervention—as the global financial landscape adjusted to sanctions that restricted Russia’s access to dollar-based payment systems.
Despite geopolitical pressures, Novak noted that the use of local currencies has not hindered trade flows between Russia and its key Asian partners. On the contrary, this arrangement has allowed Moscow to continue its energy and commodity exports while strengthening bilateral economic ties.
Countries within BRICS, ASEAN, and the Shanghai Cooperation Organization (SCO) are intensifying their efforts to de-dollarize in order to reduce exposure to U.S. sanctions, inflation risks, and the political leverage tied to dollar dominance. By shifting toward local currencies or alternative reserve systems, they aim to enhance economic sovereignty and protect themselves from U.S.-centric financial shocks. These efforts reflect shifting geopolitical dynamics and a growing momentum toward a more multipolar global financial order.
