Russia and India now conduct nearly 90% of direct transactions in their national currencies, deepening financial ties and accelerating the global shift away from the U.S. dollar.
Moscow and New Delhi Tighten Financial Ties—Is the Dollar Era Ending?
Countries worldwide are increasingly shifting away from reliance on the U.S. dollar in international trade, a process known as dedollarization. Russia and India have strengthened their financial cooperation, with nearly 90% of direct transactions now conducted in their respective national currencies. Russian Ambassador to India Denis Alipov stated in an interview with Tass:
Mutual payments in national currencies are stable. As of today, national currencies account for around 90% of direct payments between Russia and India.
He also noted that discussions are ongoing about the mutual recognition of Russia’s Mir and India’s RuPay payment systems, a step that could further enhance financial integration between the two countries.
Trade between Russia and India has continued to expand, with Indian statistics showing an 8.6% increase in the first 11 months of 2024. “According to Indian statistics, bilateral trade added 8.6% in 11M 2024 and amounted to $64.5 bln,” Alipov said.
He further detailed the contributions from each country, emphasizing: “Russian exports reached $60 bln (up by 7.7%), while supplies of Indian goods rose to $4.5 bln (up by 23.3%). Russia is one of India’s four biggest trade partners, while in terms of the volume of products supplied it is the second-largest after China.” These figures highlight Russia’s growing importance as a key trading partner for India.
The increasing use of national currencies in trade between Russia and India reflects a broader global shift toward reducing dependence on the dollar amid evolving geopolitical and economic conditions. As both countries work to integrate their financial systems, the potential recognition of the Mir and Rupay payment networks could simplify trade settlements and further strengthen economic ties between Moscow and New Delhi. With Russia securing its position as India’s second-largest supplier after China, these developments signal deeper financial and trade cooperation between the two nations.
