Russia and China Ditch the Dollar, Nearly All Trade Now Settled in Rubles and Yuan

As Putin lands in Beijing for a high-stakes state visit, Russia and China reveal that 99% of their bilateral trade now flows entirely through national currencies a sweeping financial shift that effectively locks out the US dollar from one of the world’s largest trading partnerships.

A Historic Currency Shift Takes Center Stage

Russian President Vladimir Putin touched down in Beijing on May 19, 2026, for a two-day state visit and the numbers he brought with him were staggering. Russia and China have almost completely moved away from the US dollar in their mutual trade settlements. Nearly all transactions between the two countries now happen in rubles and yuan a financial arrangement that would have seemed radical just a few years ago.

Russian Finance Minister Anton Siluanov confirmed the scale of this shift. He stated that national currencies now account for 99% of bilateral trade payments. He added that trade between Russia and China has become practically free of other foreign currencies, with the ruble and yuan dominating every deal. It is a quiet but powerful statement one that signals how far both nations have moved from Western-dominated financial systems.

Putin Calls Ties “Truly Unprecedented”

Speaking in a video address ahead of his arrival in Beijing, Putin framed the moment in sweeping terms. He said Russia-China relations have reached “a truly unprecedented level.” He also pointed out that bilateral trade has long surpassed the $200 billion mark and keeps climbing.

“Regular mutual visits and Russia-China top-level talks are an important and integral part of our joint efforts to promote the entire range of relations between our two countries and unlock their truly limitless potential,” Putin said.

He also recalled a milestone anniversary 25 years since Russia and China signed the Treaty of Good-Neighborliness and Friendly Cooperation. That agreement, Putin noted, laid the groundwork for what has since grown into a genuinely strategic relationship.

A Trade System Built to Last Without Western Interference

Russian presidential aide Yuri Ushakov explained precisely how this new financial architecture works. He told a briefing that the switch to national currencies was timely and coordinated. The result, he said, is that virtually all Russian-Chinese import and export transactions are now carried out in rubles and yuan.

He described the outcome plainly: “In fact, we have built a stable system of mutual trade that is protected from the influence of third countries and any negative trends in global markets.”

The Bank of Russia has been actively buying yuan on the domestic market through the “yuan-ruble” instrument on the Moscow Exchange a pattern that accelerated sharply after Western sanctions froze nearly half of Russia’s foreign currency reserves following the Ukraine conflict.

Energy at the Heart of It All

Energy cooperation remains the engine driving this economic relationship. Ushakov confirmed that Putin and Chinese President Xi Jinping plan to discuss the hydrocarbons sector in depth. The proposed “Power of Siberia 2” gas pipeline will sit at the center of those conversations a project that could significantly deepen energy ties between the two neighbors.

Russian oil exports to China have surged dramatically since 2022, topping 108 million tonnes in 2024. China has effectively become Russia’s most important energy market and Russia has become one of China’s most reliable suppliers.

40 Agreements and a New World Order Declaration

The state visit carries enormous symbolic and practical weight. About 40 bilateral documents are expected to be signed. The two leaders are also set to adopt a joint declaration on establishing a multipolar world and a new type of international relations a direct challenge to Western-led global institutions.

The 10th Russian-Chinese Expo opened simultaneously in the Chinese city of Harbin, drawing more than 1,500 companies from 46 countries. Around 300 Russian companies participated showcasing achievements in manufacturing, energy equipment, and digital agriculture.

Also Read | Putin’s China Visit Set to Seal Nearly 40 Russia-China Agreements

“Together We Will Do Everything Possible”

Putin closed his pre-visit address with a confident declaration about the future. “I am confident that together we will continue to do everything possible to deepen Russia-China partnership and good-neighbourliness for our two countries’ dynamic development and for the well-being of our peoples, in the interests of maintaining global security and stability,” he said.

For both nations, this visit is more than diplomacy it is a statement that a new financial and geopolitical architecture is already in place, and they intend to build on it.

Also Read | Putin’s China Visit Sends a Clear Signal; Russia-China Partnership Remains Unshakeable