Both world financial and energy markets
“It will help expand our capabilities in mutual trade and influence both world financial and energy markets," the president said.
Using local currencies will speed up trade between the two countries who are aiming to reach $100 billion by 2015. Trade between Russia and China is already nearly $90 billion, and is scheduled to hit $200 billion in the next six years.
"The People’s Republic of China is one of our key partners in the region. We will make greater use of settlements in our national currencies in our trade with China. We are already carrying out our first deals in rubles and yuan," Putin said.
Payments in national currency are planned particularly in trading oil and that Russian experts are currently assessing the possibility.
The two countries agreed on a currency swap worth up to $25 billion on October 13.
Moscow and Beijing aim for a broader use of the yuan and the ruble in mutual settlements across industries, including defense, telecoms, energy, and mining, possibly by one of Russia’s major companies, according to Putin.
Russia’s second biggest bank, VTB, has already begun to reorient business towards China and is working with Chinese regulators to remove restrictions to allow ruble transactions.
