https://sputniknews.in/20231220/how-russia--pakistan-de-dollarise-through-oil-grain-trade--5896587.html
How Russia & Pakistan 'De-dollarise' Through Oil, Grain Trade
How Russia & Pakistan 'De-dollarise' Through Oil, Grain Trade
Sputnik India
The 2023 marked a momentous milestone in the Pakistan-Russia trade transformation, characterized by a notable shift towards de-dollarization.
2023-12-20T18:35+0530
2023-12-20T18:35+0530
2023-12-20T18:35+0530
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Islamabad's decision to pay for grain imports from Moscow in UAE dirhams instead of US dollars in November exemplifies this trend, reflecting a strategic move to reduce dependency on the dollar.Pakistan and Russia are spearheading a major shift in trade dynamics, as Pakistan made history by paying for grain imports from Russia in UAE dirhams instead of US dollars in November 2023. With a record-breaking inflow of 1.4 million tonnes of grain from Russia in 2023, the two countries are leading the way in de-dollarising their trade, as per official reports as per Sputnik analysis.Particularly, Pakistan received its first oil supply in Chinese yuan, while the coal trade has been consistently settled in dirhams throughout the year. This trend extends to other commodities, with Pakistan utilising currencies such as dirhams and yuan for trading Russia's food, fertilisers, and chemicals as per media report.Trailblazing De-dollarisation: Russia and Pakistan’s Strategic Trade ShiftThis transformative trade relationship is reflected in the substantial increase in bilateral trade between Pakistan and Russia. In this context, Pakistani Ambassador to Russia, Muhammad Khalid Jamali, told Sputnik News, “Pakistan imported 800,000 metric tonnes of Russian wheat worth $550 million in 2023, contributing to nearly doubling the bilateral trade year-on-year. The overall trade between the two countries rose by 88.9%, reaching US$733.8 million compared to US$388.5 million the previous year.”The recent high-level engagements between Pakistan and Russia further underscore the growing cooperation between the two nations. Meetings between Pakistani and Russian leaders have emphasized a special focus on trade, investment, and energy, with discussions on broadening the relationship and exploring new avenues for collaboration.The ambassador highlighted that Pakistan is actively seeking avenues to boost exports and imports to Russia, particularly in light of the current opportunities in the market.Fostering De-Dollarisation & Economic Resilience in Pak-Russia Relations in 2023Additionally, as per a Sputnik News, on October, 2023, during a visit to Moscow, Pakistan's interim federal energy minister expressed interest in purchasing Russian oil and gas using currencies other than the US dollar, waving a continued commitment to diversifying and strengthening their trade ties.Similarly, in October, Caretaker Prime Minister of Pakistan Anwaar ul Haq Kakar and Russian President Vladimir Putin held a meeting on the margins of the Third Belt and Road Forum for International Cooperation in Beijing. As per official report, Russian President V. Putin and Pakistani Care Taker Prime Minister Kakar discussed bilateral cooperation with a special focus on trade, investment, and energy, while expressing satisfaction with the broadening relationship between their countries.At the end of autumn, Pakistan had imported approximately 377.2 thousand tons of wheat from Russia, amounting to around 10.6 billion rubles. Especially, nearly 82% of this sum was settled in dirhams, marking the first instance of such a payment method in the mutual grain trade between the two countries as per media report.Reducing the Ramification of Dollar-centric Trade SpectrumThis deliberate diversification of payment methods, however, signifies a concerted effort to mitigate the impact of dollar-centric trade and foster greater financial independence and resilience in their economic relations. As both countries continue to explore opportunities for expanding their trade portfolio and enhancing cooperation, the trajectory of de-dollarisation in the Pak-Russia trade transformation is poised to shape the future dynamics of their economic partnership.All in all, upon examining the annual connectivity and trade evolution between the two nations, it is evident that Pakistan is actively exploring alternative trade methods with Russia, including transitioning to payments in different currencies or national currencies rather than the dollar. This shift is attributed to Pakistan's economic stability and growth. Russia, in turn, is emerging as a reliable and stable trade partner compared to other countries. Additionally, the substantial economic stability and growth of India can be attributed to its expanding trade relations with Russia this year.
https://sputniknews.in/20231017/de-dollarization-deepens-can-pakistan-buy-russian-oil-without-usd-4865057.html
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How Russia & Pakistan 'De-dollarise' Through Oil, Grain Trade
The 2023 marked a momentous milestone in the Pakistan-Russia trade transformation, characterized by a notable shift towards de-dollarization.
Islamabad's decision to pay for grain imports from Moscow in UAE dirhams instead of US dollars in November exemplifies this trend, reflecting a strategic move to reduce dependency on the dollar.
Pakistan and Russia are spearheading a major shift in trade dynamics, as Pakistan made history by paying for grain imports from Russia in UAE dirhams instead of US dollars in November 2023. With a record-breaking inflow of 1.4 million tonnes of grain from Russia in 2023, the two countries are leading the way in de-dollarising their trade, as per official reports as per Sputnik analysis.
Particularly, Pakistan received its first oil supply in Chinese yuan, while the coal trade has been consistently settled in dirhams throughout the year. This trend extends to other commodities, with Pakistan utilising currencies such as dirhams and yuan for trading Russia's food, fertilisers, and chemicals
as per media report.Trailblazing De-dollarisation: Russia and Pakistan’s Strategic Trade Shift
This transformative trade relationship is reflected in the substantial increase in bilateral trade between Pakistan and Russia. In this context, Pakistani Ambassador to Russia, Muhammad Khalid Jamali, told Sputnik News, “
Pakistan imported 800,000 metric tonnes of Russian wheat worth $550 million in 2023, contributing to nearly doubling the bilateral trade year-on-year. The overall trade between the two countries rose by 88.9%, reaching US$733.8 million compared to US$388.5 million the previous year.”The ambassador further added, “As Pakistan continues to explore opportunities to boost exports to Russia, including the potential export of cashmere products, the momentum of this evolving trade partnership shows no signs of slowing down.”
The recent high-level engagements between Pakistan and Russia further underscore the growing cooperation between the two nations. Meetings between Pakistani and Russian leaders have emphasized a special focus on trade, investment, and energy, with discussions on broadening the relationship and exploring new avenues for collaboration.
The ambassador highlighted that Pakistan is actively seeking avenues to boost exports and imports to Russia, particularly in light of the current opportunities in the market.
Fostering De-Dollarisation & Economic Resilience in Pak-Russia Relations in 2023
Additionally, as per a Sputnik News, on October, 2023, during a visit to Moscow, Pakistan's interim federal energy minister expressed interest in
purchasing Russian oil and gas using currencies other than the US dollar, waving a continued commitment to diversifying and strengthening their trade ties.
Similarly, in October, Caretaker Prime Minister of Pakistan Anwaar ul Haq Kakar and Russian President Vladimir Putin held a meeting on the margins of the Third Belt and Road Forum for International Cooperation in Beijing. As per
official report, Russian President V. Putin and Pakistani Care Taker Prime Minister Kakar discussed bilateral cooperation with a special focus on trade, investment, and energy, while expressing satisfaction with the broadening relationship between their countries.
Following the meeting, President V. Putin said to media, “Relations between Russia and Pakistan "traditionally have a friendly nature."
At the end of autumn, Pakistan had imported approximately 377.2 thousand tons of wheat from Russia, amounting to around 10.6 billion rubles. Especially, nearly 82% of this sum was settled in dirhams, marking the first instance of such a payment method in the mutual grain trade between the two countries as per
media report.Reducing the Ramification of Dollar-centric Trade Spectrum
This deliberate diversification of payment methods, however, signifies a concerted effort to mitigate the impact of dollar-centric trade and foster greater financial independence and resilience in their economic relations. As both countries continue to explore opportunities for expanding their trade portfolio and enhancing cooperation, the trajectory of de-dollarisation in the Pak-Russia trade transformation is poised to shape the future dynamics of their economic partnership.
All in all, upon examining the annual connectivity and trade evolution between the two nations, it is evident that Pakistan is actively exploring alternative trade methods with Russia, including transitioning to payments in different currencies or national currencies rather than the dollar.
This shift is attributed to Pakistan's economic stability and growth. Russia, in turn, is emerging as a reliable and stable trade partner compared to other countries. Additionally, the substantial economic stability and growth of India can be attributed to its expanding trade relations with Russia this year.
