Putin: Nearly 40% of Russian Trade Now Conducted in Rubles

Shift in Trade Dynamics

Putin highlighted that countries considered friendly to Russia now account for three-quarters of its trade volume. He indicated that Russia plans to increase the share of trade settlements conducted in the currencies of BRICS countries, which include Brazil, Russia, India, China, and South Africa. Payments for Russian exports in "toxic" currencies from non-friendly states have halved over the past year, further boosting the use of the ruble in international trade.

“With that, the share of the ruble in import and export operations is increasing, now standing at almost 40%,” Putin said, noting that this figure has risen from approximately 30% a year ago and is significantly higher than the 15% seen in pre-war years.

Domestic Financial Overhaul

Putin also detailed plans for a major overhaul of Russia’s domestic financial market, including ambitions to double the value of the Russian stock market by the end of the decade, reduce imports, and boost investment in fixed assets. These plans are part of Russia’s broader strategy to strengthen its economy amidst ongoing Western sanctions.

Economic Resilience Despite Sanctions

Despite multiple rounds of international sanctions aimed at isolating Russia’s $2 trillion economy, it is expected to grow faster than all advanced economies this year. The International Monetary Fund (IMF) predicts a 3.2% growth rate for Russia in 2024, surpassing the 2.7% expected for the U.S. and even lower growth rates projected for Germany, France, and the U.K..

Russia argues that Western sanctions have led to greater self-sufficiency and resilience in private consumption and domestic investment. Continued exports of oil and commodities to countries like India and China, along with high oil prices and alleged sanctions evasion, have enabled Moscow to maintain robust export revenues.

Ongoing Conflict in Ukraine

Meanwhile, the conflict in Ukraine continues to rage, with recent tactical advances by Moscow’s forces in the north and northeast of Ukraine. Western leaders, marking the 80th anniversary of D-Day, reiterated their support for Ukraine. U.S. President Joe Biden and French President Emmanuel Macron praised Ukrainian forces for their courage and pledged ongoing support against Russian aggression.

Ukrainian President Volodymyr Zelenskyy, attending the D-Day commemoration ceremony, emphasized the importance of unity in the pursuit of freedom and democracy. He drew parallels between the Allies' defense of Europe during World War II and Ukraine’s current struggle, asserting that unity can prevail once again.

Earlier in the week, Putin hinted that Russia might start supplying long-range weapons to unspecified actors for strikes against the West, in response to Western support for Ukraine’s use of such weapons.