US dollar transactions do not contradict Russia's policy of trade in national currencies: Kremlin

Moscow, Feb 14 (PTI) The trade with the US in dollars does not contradict Russia's principle policy of use of national currencies in foreign transactions, the Kremlin said Saturday.

Russia switched to the use of national currencies in foreign trade after its USD and Euro accounts were frozen by the West following the outbreak of the 2022 conflict with Ukraine and has been pushing for a global de-dollarisation trend.

In an interview to the state-run TASS news agency, the Kremlin spokesperson Dmitry Peskov pointed that the dollar is the national currency of the United States, so its use in transactions with Washington will not conflict with the principle of transitioning to national currencies.

“In general, yes,” the Kremlin spokesman agreed with the thesis about the dollar as the national currency in Russian-American trade and that its use will not fundamentally affect Russia's interactions with its current partners.

Amid reports of bilateral negotiations to expand economic cooperation between Moscow and Washington, Peskov recalled that Russia did not abandon the use of the dollar—it was the US that imposed the relevant restrictions.

Peskov noted that if the dollar becomes attractive, its use will return—but only alongside other currencies. However, the American currency will have to face serious competition from alternative and national currencies that are already in active use, he said.

Since the outbreak of armed conflict with Ukraine in 2022, Moscow has been demanding payment for its hydrocarbons into rouble as its USD and Euro accounts were frozen in the West.

Russia is mostly trading with India and China in rupees and yuan, noted officials. PTI VS NPK NPK