During the St. Petersburg International Economic Forum (SPIEF) on June 7, Russian President Vladimir Putin revealed that almost 40% of the country’s trade turnover is now conducted in rubles. This represents a significant increase from around 30% a year ago and the 15% level before the conflict with Ukraine. The use of USD, euros, and other Western currencies in transactions has declined as Moscow considers them “unfriendly.” Russian exports paid in these currencies alone decreased by half last year.
Putin emphasized that Russia aims to boost the use of currencies from BRICS member countries in trade. These countries, including Brazil, Russia, India, China, and South Africa, are working to establish a payment system that is independent and free from political pressure, fraud, and external sanctions. He mentioned that friendly countries play a crucial role in shaping the global economic landscape and already account for three-quarters of Russia’s trade volume.
In light of enhancing relationships with Asian, Latin American, and African countries, the Kremlin is leveraging SPIEF to forge new partnerships. Putin detailed plans for significant financial market reforms, with goals including doubling the value of the stock market by the end of the decade, reducing imports, and increasing investments in fixed assets.
Despite facing sanctions from the West due to the Ukraine conflict, Russia’s $2 trillion economy is expected to grow faster than advanced economies this year. The International Monetary Fund (IMF) forecasts a 3.2% GDP growth for Russia in 2024, surpassing the rates of the United States (2.7%) and countries like Germany, France, and the UK (below 1%).
Russian officials claim that Western sanctions have increased the country’s self-reliance while stimulating private consumption and domestic investment. The country has redirected its oil and commodity exports towards countries like India and China, maintaining strong revenue streams. The Russian Ministry of Economy predicts GDP growth of around 2.3% in 2025-2026, with a steady decline in the ruble’s value compared to the USD.