Russia eliminating US dollar transactions in its foreign military deals – state arms exporter

[Piotr]

Russia eliminating US dollar transactions in its foreign military deals – state arms exporter
22 Jul, 2021 13:27

A Kamov Ka-52 Hokum-B helicopter stands at Kubinka air base before the Victory Day parade at Red Square in Moscow, Russia © Reuters / RIA Novosti


The US dollar’s share in Russia’s military contracts with other countries is approaching zero, according to the country’s main defense contractor Rosoboronexport.
“Most of Rosoboronexport's contracts are currently concluded in rubles or in the national currencies of partner countries. The share of dollars in our contracts is steadily approaching zero,” the company’s CEO Alexander Mikheyev told reporters at MAKS 2021 Air Show.


He noted that Russia has been deliberately abandoning the dollar in payments for its export arms contracts, which, for the past few years, have brought the country about $15 billion annually in US dollar equivalent, TV channel Zvezda notes.

This follows a broader trend towards de-dollarizing the Russian economy, with the country’s Central Bank and National Wealth Fund recently cutting use of the greenback in their transactions to zero.

The state arms-export company has had a successful week, nailing 13 international contracts totaling some $1.2 billion on the sidelines of the MAKS 2021 international air show, currently underway in Zhukovsky, near Moscow.

https://www.rt.com/business/529934-russia-eliminating-us-dollar-arms-exports/

 

[nang2]

Makes sense.

 

[nahtanbob]

Makes sense.

What do Russians wants to be paid in ? vodka ?

 

[nang2]

What do Russians wants to be paid in ? vodka ?

Anything that Russians can make use of.

 

[nahtanbob]

Anything that Russians can make use of.

US Dollar meets the definition for now

 

[nang2]

US Dollar meets the definition for now

No it doesn't. US sanction could easily render US dollars in Russian hands useless.

 

[nahtanbob]

No it doesn't. US sanction could easily render US dollars in Russian hands useless.

there is nothing US sanctions can do. If you have US dollars you just pay the person delivering the goods and services. assuming the people are willing to evade sanctions

 

[Hamartia Antidote]

Makes sense.

Yes, they should have only been demanding rubles since Day 1. Why use our currency...unless theirs is junk.

 

[nang2]

there is nothing US sanctions can do. If you have US dollars you just pay the person delivering the goods and services. assuming the people are willing to evade sanctions

Here, US dollar doesn't mean the paper cash that you can use anywhere with whoever wants to accept it. The large trade in US dollar, like those happening cross border, is always involved with banks that can clear the US dollar payment. That has to go though a clearing system called US Clearing House Interbank Payments System, which is entirely controlled by US.

Yes, they should have only been demanding rubles since Day 1. Why use our currency...unless theirs is junk.

Not necessarily. They can demand anything. All exports eventually are for imports. So whatever they like to import can serve as a payment for their export.

 

[nahtanbob]

Here, US dollar doesn't mean the paper cash that you can use anywhere with whoever wants to accept it. The large trade in US dollar, like those happening cross border, is always involved with banks that can clear the US dollar payment. That has to go though a clearing system called US Clearing House Interbank Payments System, which is entirely controlled by US.

Not necessarily. They can demand anything. All exports eventually are for imports. So whatever they like to import can serve as a payment for their export.

The operative word is large dollar. Russia is not a large dollar economy anymore. They can barter their products for dollars without the clearing system.

 

[Beidou2020]

China must accelerate de-dollarisation.

 

[GumNaam]

another nail in the coffin of usd. big powers are pulling away from the dollar which is a currency heavily in debt, over $30 trillion by conservative estimates. soon, no one would want to inherit its mess.

 

[BHAN85]

Russian ruling elite can't live without western luxury products: