Russian President Vladimir Putin has announced that non-Western currencies are now used in over 96% of commercial transactions among Commonwealth of Independent States (CIS) member countries. This significant shift comes as the region’s trade volume continues to grow, with Russia’s trade with the bloc totaling nearly $90 billion in the first nine months of the year.
Speaking at an informal CIS summit in St. Petersburg, Putin emphasized the success of cooperation among member states, citing the high volume of trade as evidence. The CIS, which comprises nine member states, including Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Moldova, and Uzbekistan, has become an authoritative regional integration group over the past three decades.
Russia has been actively promoting the use of national currencies in regional and international trade in recent years, driven in part by the West’s imposition of unprecedented sanctions over the Ukraine conflict. These sanctions effectively cut Russia off from the Western financial system, prompting a drive to reduce dependence on the US dollar and euro. The trend is gaining momentum among developing nations, with many seeking to diversify their trade and reduce their reliance on Western currencies.
The CIS was established in 1991, following the dissolution of the Soviet Union, with the aim of promoting cooperation on economic, political, and security issues among its members. The organization’s members build ties based on principles of “good-neighborliness,” “equal partnership,” and “mutual benefit,” while respecting and taking into account each other’s interests.
The shift towards using national currencies in commercial transactions among CIS member states reflects the region’s growing economic integration and cooperation. As the global economic landscape continues to evolve, the use of non-Western currencies is likely to become increasingly significant, with potential implications for international trade and financial systems.
