Russia is preparing to use the ruble to settle its agricultural exports

Russian Deputy Prime Minister Victoria Abramchenko said Friday (July 28th) that her country will urge buyers of its agricultural exports to pay in rubles instead of dollars as a way to get around Western sanctions.

She stated that the government is preparing a draft decree that would enable buyers to open ruble accounts to achieve this.

Russia has long called for its state agricultural bank to be reconnected to the global payments network SWIFT, from which it was excluded after last year’s invasion of Ukraine. The failure to resume its connection to the network was one of the reasons for its withdrawal last week from the agreement to export Ukrainian grain through the ports of the Black Sea.

President Vladimir Putin highlighted the need to switch to national currencies in trade transactions, in a speech at the Russia-Africa summit in St. Petersburg on Thursday.

Abramchenko stated that the decree “will facilitate the access of friendly countries to the food market and the payment of food products in national currencies.”

She described this as a tool to protect Russian exporters and “friendly” countries of her country from the pressure of sanctions.

“Our partners are used to receiving high-quality Russian food without interruption, and we will continue these deliveries,” she added.