25 Apr 2022 12:13

Russia proposes partners in EAEU, BRICS, SCO increase settlements in national currencies

TASHKENT. April 25 (Interfax) - Russia is urging Eurasian Economic Union (EAEU), BRICS and Shanghai Cooperation Organization (SCO) countries to increase settlements in national currencies to increase independence in mutual trade, Industry and Trade Minister Denis Manturov said, pointing to high inflation in western economies.

"What's happening in the whole world in the past two years, firstly, is the impact of the pandemic. What's happening in the global economy today gives us an indication of how we need to restructure our logistics, our production cooperation, in what areas we need to develop our economies. This is also, as was commonly said before, dedollarization. Now we have also added de-euroization, meaning a transition to our own currencies in order to be as independent as possible in terms of mutual settlements in reciprocal deliveries of our products and in mutual cooperation," Manturov said at the Innoprom forum in Tashkent.

Russia's trade with EAEU, BRICS, SCO and APEC countries grew by 34% to 38% last year, he said.

"The alliances that I just mentioned are almost half of the global economy and this is the half that lays the foundation for the future and forms the economic realities for the future," Manturov said.

"We see what is happening now in Western Europe, in the United States, it's pretty much hyperinflation. No one remembers such a thing, or at least this has not happened for a long time, more than 30 years, in these countries. Prices are rising fast for exchange-traded commodities. This is having a strong impact on the development of sectors of industry and the economy in general," Manturov said.

Speaking about cooperation with Central Asian countries, he cited the example of Uzbekistan. "We currently see prospects for development in pharmaceuticals, and what's already on the agenda is the auto industry, farm machinery and food industry equipment," Manturov said.

He also recalled possible cooperation in development of mineral resources. For example, Russia is discussing trilateral cooperation on phosphate fertilizers with Uzbekistan and Kazakhstan, he said.

In future, cooperation with Uzbekistan could give Russia an opportunity to expand its presence, through Russian-Uzbek joint ventures, in other markets in central and south-central Asia, such as Afghanistan and Pakistan, Manturov said.