Tue, 04 Oct 2022

Turkey, Russia to Ditch Dollar in Trade

11 Aug 2022, 22:38 GMT+10

TEHRAN (Tasnim) - The Turkish energy ministry said Thursday that Turkey and Russia had reached an agreement in principle to convert some of the payments for Russian natural gas into rubles, as part of their expanding trade relations.

- World news -

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, RT reported.

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.

The two nations also signed a roadmap for economic cooperation that envisages bringing bilateral trade turnover to $100 billion a year. The presidents also discussed a broad range of other issues, including Ukrainian grain exports.

Earlier this month, Putin said EU countries should be grateful to Turkey for ensuring a reliable supply of Russian gas to the bloc via the TurkStream pipeline.

The agreements come amid unprecedented Western sanctions on Russia for the war in Ukraine. Turkey has refused to join the sanctions, and instead has pushed for truce talks between Moscow and Kiev.

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