Russia and Turkey ditch dollars to boost trade amid sanctions pressure
Russia and Turkey are pushing for more trade in local currencies as both countries face economic pressure. The move comes after US sanctions disrupted traditional payment methods, forcing businesses to find alternatives. This shift is already boosting trade with key partners, including Central Asian nations and automotive suppliers.
The Russian rouble and Turkish lira have weakened in recent months, making local currency deals more practical. Turkey is now expanding trade in its own currency with major partners like Russia, China, Iran, and Ukraine. Officials have also signalled openness to similar agreements with European countries.
Russia's trade ministry is backing the same approach. Minister Denis Manturov has called for wider use of local currencies to reduce financial risks. The country plans to switch to national currencies for trade with the Middle East, South-East Asia, Latin America, and Africa. The automotive sector has already seen changes. Russian carmakers, hit by US sanctions, now pay for imported parts in local currencies. Uzbekistan and other Central Asian nations have benefited the most from this shift. Trade between Russia and Uzbekistan jumped from $408 million in 2018 to over $1 billion by 2024â2025. Machinery, vehicles, and auto parts drive much of this growth, with mutual trade expected to reach $3 billion soon and a target of $5 billion by 2025.
The push for local currency trade is reshaping economic ties between Russia, Turkey, and their partners. For Central Asia, this means higher trade volumes and stronger industrial links. For Russia and Turkey, it offers a way to bypass sanctions and stabilise commerce with key markets.
