Moscow has proposed to Doha a switch to the use of national currencies in trade settlements, as economic relations between Russia and Qatar continue to strengthen. Dmitry Dogadkin, the Russian Ambassador to Qatar, revealed that the two countries are currently working on this proposal.
In addition to exploring the use of national currencies, Dogadkin highlighted the expanding cooperation in investments between the two countries. He mentioned the successful partnership with the Russian Direct Investment Fund and the development of joint projects worth over 160 billion rubles ($1.9 billion). This further indicates the positive trajectory of economic relations between Russia and Qatar.
Trade between Russia and Qatar has been steadily increasing, with a notable growth of $19.23 million in the first quarter of 2023. This upward trend demonstrates the growing economic ties between the two nations. Dogadkin also emphasized the potential for cooperation in transportation and logistics, particularly in the implementation of the International North-South Transport Corridor. This presents an exciting prospect for further collaboration and trade opportunities.
The proposal to switch to national currencies in trade settlements aligns with Russia’s broader strategy to reduce reliance on the Western financial system. As global geopolitical tensions persist, Russia and its trading partners among developing nations have been actively seeking alternative payment mechanisms that bypass the US dollar. By using national currencies, both Russia and Qatar can assert more control over their trade settlements and mitigate potential risks associated with the Western financial system.
This move towards national currency settlements is not unique to Russia and Qatar. Foreign Minister Sergey Lavrov previously stated that Russia’s trade with countries in the Persian Gulf has been soaring, as various nations also seek to expand economic ties and explore alternate payment mechanisms. The desire to reduce dependence on the US dollar and the euro in trade settlements has become a shared objective among countries striving for greater economic autonomy.
The proposal to switch to national currencies in trade settlements highlights the deepening economic cooperation between Russia and Qatar. As trade continues to grow and joint projects flourish, both countries are actively exploring ways to secure their economic interests by minimizing reliance on the Western financial system. This strategic shift reflects a broader global trend of increasing economic autonomy and diversifying away from traditional dominant currencies. As Moscow and Doha collaborate further, their joint efforts may serve as an example for other nations seeking greater economic independence.