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Supply Chain

Russia Prepares Switch To Rouble Settlement For Farm Exports

By Dayeeta Das
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Russia Prepares Switch To Rouble Settlement For Farm Exports

Russia will get buyers of its farm exports to pay in roubles rather than dollars as a way to circumvent western sanctions, deputy prime minister Viktoria Abramchenko has said.

She said the government was preparing a draft decree that would enable buyers to open special rouble accounts to make this possible.

Moscow has long demanded that its state agricultural bank be reconnected to the international SWIFT bank payments network from which it was shut off after Russia invaded Ukraine last year. Its failure to get reinstated was one of the reasons why Russia last week quit the Black Sea deal for Ukrainian grain.

Shift Trade To National Currencies

President Vladimir Putin highlighted the need to shift trade to national currencies in a speech to a summit of African leaders in St Petersburg.

Abramchenko said the decree would "simplify the access of friendly countries to the food market and pay for food products in national currencies".

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She called it a tool to protect Russian exporters and countries "friendly" to Russia against sanctions pressure.

"Our partners are accustomed to uninterrupted receipt of high-quality Russian food, and we will continue such deliveries," she said.

Import Duties

Earlier this week, Moscow raised duties on imports from so-called 'unfriendly' countries, promising that domestic producers will be able to fill the gaps.

Customs duties on 'unfriendly' imports of wine will be raised to 20% from 12.5%, the government said, outlining measures drafted by prime minister Mikhail Mishustin.

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Russia also plans to ban the import of finished seafood products.

'Cancelling imports from the European Union, United States and Norway will free up specific market niches for domestic producers to fill,' the government said.

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