Russia Plans Domestic Payment System to Bypass Western Sanctions

Russia plans to establish a domestic payment system to facilitate trade and international transactions without disruptions from Western sanctions.

Prime Minister Mikhail Mishustin announced this initiative at the Moscow Financial Forum, emphasizing the need for a principles-based system as an alternative to existing Western-controlled financial institutions. The new system aims to improve the settlement experience for Russian entrepreneurs and their international partners by ensuring equality, confidentiality, and low-cost, instant transactions.

While Russia currently conducts about 70% of its trade with China in national currencies, sanctions threaten normal trading flows with key partners like Turkey and China. Mishustin did not clarify whether this new system would differ from the recently tested BRICS Pay network.

Clever Robot News Desk 21^th October 2024