AS Colins Continental - Russia Embraces Yuan

AS Colins Continental reports shows that Russia has turned to the Chinese currency amid sanctions by western countries, creating a wealth of opportunity for Chinese enterprises.

New Taipei City, Taiwan, November 30, 2022 --( A recent report by Asian based AS Colins Continental revealed that Russia is now at number 4 on the top 15 list of countries using the yuan outside of China. In April this year it did not even feature on this list.

The report showed that western sanctions against Russia following its invasion of Ukraine early this year has pushed Russian interest in the Yuan to soar after Russian banks and companies had been locked out of dollar and euro payment systems.

Jonathon Kallis at AS Colins Continental says Russia’s use of the Yuan has been steadily increasing for some time, but the recent surge has delighted many Chinese businessmen.

For many Chinese exporters, the rapid adoption of the Yuan by Russia presents a golden opportunity. The AS Colins report stated that exporters are taking advantage of the opportunity to reduce their currency risks and payments are now easier for Russian purchasers.

It is well known that Russian president Vladimir Putin has wanted to reduce Russia’s reliance on the American currency. Perhaps an unforeseen consequence of the invasion of Ukraine has been the acceleration of this move away from the dominant dollar.

With China being the biggest global power to refrain from joining the heavy-handed sanctions against Russia, the increased interest in the Yuan may also provide a significant economic counterweight to the heavily backed US dollar.

“It is interesting to note that Russia’s growing reliance on the Chinese Yuan may in fact limit the impact of western sanctions on Russia,” said Mr. Kallis at AS Colins Continental.
AS Colins Continental
Pai-Han Lin