Dollars vs Euro.File Photo:VCG

Russian exports settled in US dollars fell below 50 percent for the first time in the last quarter of 2020, latest data showed, as Russia has continued its efforts to wean off its dependence on the dollar amid an acceleration of US sanctioning measures against Kremlin.

The plunge was mostly attributed to Russia’s decision to conduct the bulk of its trade with China in euros. More than three-quarters of Russia’s trade with China is now settled in euros, Bloomberg reported, citing figures that Russia’s central bank published on Monday.

The euro share of Russia exports rose more than 10 percentage points to 36 percent, according to the data.

China’s trade with Russia jumped 15.4 percent year-on-year to reach $29.26 billion in the first three months of this year, with Chinese exports to Russia soaring 42.7 percent year-on-year to hit $13.06 billion, Chinese customs figures show.

Adding to the decreased dollar dependence, Russia’s central bank earlier offloaded its holdings of US government assets in its international reserves, while increasing gold and euro holdings.

Earlier in April, the Russian Foreign Ministry announced a slew of retaliatory measures including entry bans and expulsion of US diplomats in response to US government’s “hostile actions.”

The countermeasures taken in response to anti-Russian sanctions represent just a fraction of the capabilities at its disposal, the Russian foreign ministry said in a statement announcing its retaliatory actions.

Global Times