Putin invited Mongolia and China to more actively switch to settlements through national payment systems

Russian President Vladimir Putin held a trilateral meeting with Chinese President Xi Jinping and Mongolian President Ukhnaagiin Khurelsukh on the sidelines of the SCO summit in Samarkand. He suggested more actively switching to national payment systems. In addition, the president said that in the first quarter, the share of payments in national currencies in Russia’s trade with China increased to 27.5%.

Vladimir Putin expressed the opinion that the Russia-China-Mongolia format is of particular importance and complements bilateral cooperation. “Our countries share approaches to most pressing issues on the international agenda, and act from coordinated positions in the UN and regional organizations,” the president said. The Russian President noted that the construction of the Soyuz Vostok gas pipeline from Russia to China through Mongolia is on the agenda. According to him, Gazprom is finalizing the details of the project with China and Mongolia.

“We also support the construction of oil and gas pipelines to supply natural gas from Russia to China through the territory of Mongolia, and I propose to study this issue from a technically and economically sound point of view,” said Ukhnaagiin Khurelsukh.

Compared to 2014, the total Russian trade with China and Mongolia is almost 60% higher, exceeding $142 billion in 2021. In the first half of this year, this figure increased by another 30%, Putin noted.

“In this context, it would be important, wherever possible, to switch to national payment platforms, such as the financial messaging system of the Bank of Russia and the Chinese system of cross-border payments,” the president said. This should secure settlements between states from political risks. Xi Jinping noted in response that China supports an increase in the share of settlements in national currencies.

The President of the Russian Federation also previously spoke with Xi Jinping as part of a bilateral meeting. He thanked leader of the People’s Republic of China for “a balanced position in connection with the Ukrainian crisis.”

Leonid Uvarchev