Russia refuses to sell its arms for US dollars

Russia has refused from the US dollar in settlements for arms deals, as the use of national currencies reduces the risk of delays in payments, the head of Rosoboronexport, Alexander Mikheev said, Interfax reports.

"We traditionally announce all our transactions in dollars for ease of calculation. In real terms, Rosoboronexport has abandoned settlements in the American currency almost completely,” he noted.

Indeed, payments for arms sales between Russia and India are made in Russian rubles and Indian rupees.

Russian arms sales collapse

In 2020, Russian arms sales fell 6.5 percent in comparison with 2019 — from $28.2 to $26.4 billion. The indicator has been declining for three consecutive years now, with Russian companies showing one of the most considerable declines among all other members of the market during the last period.

Almaz-Antey Concern (produces air defense systems, firearms for aircraft and armored vehicles, artillery shells and surface-to-surface missiles, airspace surveillance and coordination and artillery radars) has reported a decline in its sales volumes for the year by 31 percent; the United Shipbuilding Corporation — by 11 percent. At the same time, the United Aircraft Corporation has increased its shipments by 16 percent. Russia's arms sales peaked in 2017, when Russian suppliers accounted for five percent of the world market.