Russia Refused to Settle in Dollars in Large Trade Contracts
OREANDA-NEWS Russia abandons the dollar in the calculations for major sales contracts, including the supply of anti-aircraft missile systems С-400. "We just try to use dollars in the calculations, if only nothing else can be used," — said in an interview Minister of Industry and Trade of Russia Denis Manturov.
The Head of the Ministry of Industry and Trade stressed that this approach is used primarily in transactions involving companies that are in the sanctions lists of the United States and the European Union. He did not name these companies, noting that otherwise, "next time for sure and will mark it in all places." According to Manturov, in many industries that are in a situation related to the sanctions regime, and even in a preventive manner, Russia is trying to "use the mechanisms of national currencies, or the Euro as one of the currencies that is used in mutual settlements."
As an example, Manturov cited contracts for the supply of C-400 anti-aircraft missile systems to India, Turkey and China. In these transactions, different formats were used, including rubles. "This is the national currency of those countries that are calculated with US, and the rubles that are purchased on the exchange, there are different formats," Manturov explained.
The Minister said that barter schemes are not yet used in contracts. "This is the most difficult tool. We did it in the early 1990s, " he said. And he noted that there are other, long-established and more modern forms of payment.
China became the first foreign customer of C-400 in autumn 2014. Deliveries of six C-400 divisions worth more than $3 billion began in China in January 2018.
In May 2018 was agreed a contract to supply C-400 to India for $6 billion In July this year, the transaction has received the approval of the Council for Defence procurement of India. The contract was signed in early October. According to it, India will have five regiments of C-400.
In early September 2018, Turkish President Recep Tayyip Erdogan said that Ankara has already agreed with Moscow on the purchase of C-400 and does not intend to ask permission for it from anyone.
Qatar is also interested in buying C-400 complexes.
In September 2018, the state Department imposed sanctions against the Department of military training and supply of the Central military Council of China and its leader Li Shanfu. Restrictions are imposed on them for the purchase of 10 Russian SU-35 fighters in December 2017 and the acquisition of C-400 air defense systems in January 2018. Both transactions were made after the enactment of the USA law CAATSA, which prohibits transactions with Rosoboronexport.
The representative of the State Department then said at a briefing in Washington that these sanctions are directed against Russia, not against the defense of other countries. "The absolute goal of these actions is to prevent the flow of funds to the Russian government," he stressed.