90% of Russia-India Trade Now in National Currencies — What’s Next for BRICS De-Dollarization?

This move, part of a broader trend of de-dollarization, marks a milestone in economic cooperation between Moscow and New Delhi. Russian Ambassador to India Denis Alipov confirmed the development in an interview with Tass, stating:

“The settlement in national currencies between the two countries is stable, and currently, about 90% of direct transactions are conducted in national currencies.”

The transition could become even more seamless as discussions advance on integrating Russia’s Mir and India’s RuPay payment systems. If finalized, this would simplify transactions and reinforce financial independence from Western-dominated systems.

Trade between Russia and India continues to expand at a rapid pace, reflecting the deepening economic ties between the two BRICS nations. Indian data shows an 8.6% increase in bilateral trade during the first 11 months of 2024, reaching a total of $64.5 billion.

Alipov detailed the trade balance, stating that Russian exports reached $60 billion, marking a 7.7% increase, while Indian goods climbed to $4.5 billion, reflecting a 23.3% surge. Russia ranks among India’s four largest trade partners and is the second-biggest supplier after China.

“Russia is India’s fourth-largest trading partner and the second-largest supplier by volume, following China, said Alipov.

With Russia emerging as India’s second-largest supplier after China, the numbers underscore Moscow’s growing economic influence in the South Asian market. Additionally, major Russian companies are also adopting Bitcoin for cross-border transactions.

The rising use of national currencies between Russia and India aligns with a broader push within BRICS to reduce dependence on the U.S. dollar. The bloc, originally formed by Brazil, Russia, India, China, and South Africa, expanded last year to include Egypt, Ethiopia, Iran, and the UAE.

In early 2024, Brazilian President Luiz Inácio Lula da Silva called for the creation of an alternative currency for BRICS trade. The idea gained momentum at the BRICS summit in Kazan, Russia, in October, where a symbolic BRICS banknote was unveiled, signaling a commitment to local currency settlements.

Brazilian President Lula da Silva calls for abandoning the dollar in BRICS trade | Source: Sprinter Observer

However, the move has not gone unnoticed in Washington. In December 2024, Donald Trump fired off a warning on his Truth Social platform, threatening to impose a 100% tariff on all imports from BRICS nations if they pursue a common trade currency.

President Trump threatens 100% tariffs on countries supporting BRICS currency | Source: Benny Johnson

His remarks highlight the growing tensions between emerging markets looking for alternatives and the U.S., which seeks to maintain its financial dominance.