Wednesday, 5 October, 2022

Russia, Turkey reach deal to ditch dollar in trade

Russia and Turkey have reached an agreement in principle to switch some of the payments for Russian natural gas to rubles as part of deepening trade ties between the two countries, the Turkish energy ministry announced on Thursday.

The move to avoid payments in US dollars helps both countries. Russia has called the currency “toxic,” as Western sanctions make it difficult to conduct transactions. It also helps Turkey protect its dwindling hard-currency reserves, reports RT.

Last week, Turkish President Recep Tayyip Erdogan confirmed that Ankara would start paying for some natural gas imports from Russia in rubles after several hours of talks with his Russian counterpart Vladimir Putin in Sochi.