Russia starts the process to abandon the US dollar peg

Against the background of the growing sanctions pressure on the part of the United States, Russia  gradually started to refuse from the use of the US dollar. The share of the US dollar in Russia's export settlements in the fourth quarter of last year fell below 50 percent for the first time and amounted to 48.3 percent. A year earlier, this number was higher than 61 percent, Bloomberg said.

The current situation is largely due to the increase in trade between Russia and China. As of the end of the fourth quarter, more than 80 percent of it is conducted in euros. During the recent months, the Russian authorities have been trying to isolate the Russian economy from American intervention amid the growing threat of anti-Russian sanctions.

• On April 15, Washington imposed new sanctions against Russia. Part of the restrictions affected the Russian national debt.
• From June 14, US companies will be prohibited from directly purchasing Russian debt securities issued by the Central Bank, the National Wealth Fund or the Finance Minister.
• However, they will still be able to buy and sell Russian government bonds on the secondary market. Interestingly, US investors and experts called the sanctions too lenient.

China, in turn, is ready to support Moscow. Chinese Foreign Ministry spokesman Wang Wenbin assured that "in matters of protecting state sovereignty, the PRC and Russia will support each other." At the same time, Beijing hopes that Washington and Moscow can begin a constructive dialogue and resolve differences on the basis of mutual respect, Wang said.