Moscow is considering switching payments for its grain exports to rubles to protect the Russian business amid Western sanctions, similar to the gas payment scheme, Dmitry Birichevsky, the head of the Russian Foreign Ministry’s economic cooperation department, told Sputnik.
“In the recent years, we have been consistently pursuing a policy of reducing a share of currencies of unfriendly countries, primarily of the US dollar and the euro, in Russia’s foreign trade.
The Russian government has been taking necessary measures so that the Russian business can make payments involving foreign partners in rubles, their national currencies or suitable currencies of third countries. This work also fully concerns the grain market,” Birichevsky said, when asked if Moscow planned to switch payments for national grain to rubles.
According to the available data, some importers of the Russian grain, in particular, those from Turkey, have already switched to paying in rubles, the official added.
Moreover, from July 1, the Russian authorities switched the calculation of export duties on grain to rubles with a view to reducing dependence of Russian producers on exchange rates volatility, the diplomat said. On February 24, Russia launched a military operation in Ukraine after the breakaway republics of Donetsk and Luhansk appealed for help in defending themselves against Ukrainian forces.
The West responded by imposing comprehensive sanctions against Russia. Moscow has taken a number of retaliatory measures, including switching gas payments to rubles for countries that have imposed restrictions.
The military operation itself and subsequent disruptions in logistical and financial operations have undermined supply chains and contributed to a spike in food prices worldwide.
Source: IOl
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