Here's why Russia claims that sticking to dollar in trade with US doesn't contradict dedollarisation

The Kremlin on Saturday said the use of the US dollar in trade with Washington does not contradict Russia’s broader policy of promoting transactions in national currencies, even as Moscow continues to push for de-dollarisation in global trade.

Speaking to state-run TASS news agency, Kremlin spokesperson Dmitry Peskov said that the dollar, being the national currency of the United States, could naturally be used in bilateral trade without undermining Russia’s strategy of reducing dependence on Western currencies.

“In general, yes,” Peskov said when asked whether using the dollar in Russian-American trade aligns with Moscow’s policy of transitioning to national currencies. He added that such transactions would not fundamentally affect Russia’s economic interactions with other partners.

Russia began shifting towards national currencies in foreign trade after its US dollar and euro accounts were frozen by Western countries following the outbreak of the Ukraine conflict in 2022. Since then, Moscow has advocated a broader global trend towards de-dollarisation.

Amid reports of possible negotiations aimed at expanding economic cooperation between Moscow and Washington, Peskov noted that Russia had not abandoned the dollar voluntarily, but faced restrictions imposed by the United States.

“If the dollar becomes attractive, its use will return — but alongside other currencies,” he said, adding that the American currency would face competition from alternative and national currencies already in use.

Following the start of the conflict with Ukraine, Russia demanded payment for its hydrocarbons in roubles as part of efforts to reduce reliance on Western financial systems.

Officials also pointed out that Russia currently conducts a significant portion of its trade with countries such as India and China in local currencies, including the rupee and the yuan.

The Kremlin’s remarks come amid ongoing discussions on reshaping global trade arrangements and payment systems in response to geopolitical tensions and sanctions.