Most payments for imports of such goods in 2023 were made using yuan and rupees, according to the outlet
Russian importers of electronics have nearly completely abandoned the US dollar and euro in settlements with foreign vendors and distributors, Izvestia reported on Monday, citing an industry source.
A manager of one of the country’s electronics manufacturers told the outlet that nearly all purchases in 2023 were paid for with Chinese yuan and Indian rupees, as well as with the national currencies of other developing countries.
One source, who asked not to be identified, told the Russian paper that replacing dollars with other currencies offers a number of advantages.
“Currently, in 99% of cases we use rubles, yuan, dirham, won, dong,” the industry representative said, adding that such deals pose “no risks of traceability of shipments, ensure fast circulation of currency, make it possible to reduce the number of intermediaries during deliveries and exclude participation of correspondent banks from unfriendly countries.”
Another source close to the industry said that in late 2023, several financial institutions in Russia even offered to broker settlements in cryptocurrencies in deals with foreign suppliers.
The avoidance of dollars and euros by wholesale buyers of equipment is obvious, according to Eldar Murtazin, leading analyst at Mobile Research Group, who explained that Western currencies are now difficult to buy in sufficient quantities in Russia and very difficult to transfer to anyone abroad due to sanctions.
The analyst noted that the cost of purchases did not increase when Russian importers changed settlement currencies, adding that it even generates a modest 1% savings when deals are settled in Chinese yuan.
Moreover, China’s currency can easily be exchanged, transferred, or converted into dollars outside of Russia, which allows market participants to avoid shortages and failures in logistics or payment systems.