Anwar, Putin discuss using Ringgit and Ruble in Malaysia-Russia trade

Malaysia is exploring the possibility of conducting trade with Russia using local currencies as both countries seek to reduce reliance on the US dollar in bilateral transactions.

The matter was discussed during a meeting between Prime Minister Datuk Seri Anwar Ibrahim and Russian President Vladimir Putin on the sidelines of the ASEAN-Russia Commemorative Summit, in Kazzan, Russia on June 17.

According to a reports, both leaders exchanged views on the potential use of direct ringgit-ruble settlements as part of broader efforts to strengthen economic cooperation and facilitate trade between the two countries.

The leaders also exchanged views on expanding cooperation in energy, new technologies, cybersecurity, digitalisation, artificial intelligence, modern agriculture and pharmaceuticals, while exploring mechanisms to expand bilateral trade and investment using the ringgit and ruble

While no formal agreement on local-currency trade was signed during the meeting, the discussions signalled a willingness from both sides to explore alternative payment mechanisms that could support trade and investment activities.

Malaysia and Russia have been looking to deepen economic ties in recent years, with both countries identifying opportunities in sectors such as energy, food security, halal-related industries and commodity trade, including palm oil.