Global energy markets are witnessing a notable shift as Russia increasingly moves away from using the US dollar in its oil and petroleum transactions.
Recent data from the Ministry of Energy highlights a dramatic change in how Russian oil is being paid for, signaling a new era in international trade settlements.
Dollar and Euro Collapse in Oil Settlements
Since 2022, the dominance of the dollar in Russian oil trade has plummeted, dropping from 55% to just 5%.
The euro hasn’t fared much better, falling from 30% to a mere 1%.
In contrast, domestic and alternative currencies are taking center stage, with the ruble accounting for 24% and the Chinese yuan now leading with a commanding 67% share of oil payments, according to the Energy Ministry’s report.
Ruble Gains Ground in Exports
While the yuan dominates oil settlements, the ruble continues to strengthen overall in Russia’s export operations.
It now holds a 41.3% share of total exports—a modest increase of 2.3 percentage points compared to 2023—but still a clear sign of its growing role in international trade.
Combined Dollar and Euro Share Retreats
By the end of 2024, the combined share of the dollar and euro in Russia’s export currency structure had fallen to 18.6%, down from 31.6% the previous year.
Despite this decline, these currencies remain dominant in transactions with American and European partners, accounting for 67.5% of settlements in those regions, according to Central Bank data.
Meanwhile, the ruble’s role in these exports rose to 30.1%.
Ruble Becomes Key in Import Payments
The ruble isn’t just gaining ground in exports. In the second quarter of 2024, it overtook other currencies to become the main settlement currency for imports for the first time, surpassing a 40% share.
This highlights Moscow’s growing reliance on its national currency in global trade.
Putin on Russia’s Dollar Strategy
Addressing the shift, President Vladimir Putin emphasized on September 5 that Russia is not deliberately pursuing a policy of dedollarization.
Rather, he explained, Western restrictions effectively forced the move away from the dollar.
“It was not us who abandoned the dollar, but rather, they refused us,” Putin said, framing the trend as a response to external pressures rather than a strategic policy decision.
What This Means for Global Trade
The reshuffling of currencies in Russia’s oil and import markets has major implications for global finance and energy trading.
As the yuan and ruble take more prominent roles, traditional dollar- and euro-based systems are being challenged, potentially reshaping how international oil payments are conducted in the coming years.