The Russian rouble hit its strongest level against China’s yuan since February 2023 on Tuesday, ahead of President Vladimir Putin’s visit to China with new business deals on the agenda.
Kremlin foreign policy aide Yuri Ushakov said ahead of the visit that "practically all" payments in the $240 billion trade between the two countries are now made in yuan and rouble, shielding them from Western sanctions.
Moscow Exchange data showed the rouble strengthened to 10.45 against the yuan. Against the U.S. dollar, the rouble crossed the 72 mark for the first time since March 2023, according to LSEG data.
The rouble is supported by high oil prices due to the war in the Middle East, a surprise 30-day extension of the U.S. sanctions waiver for Russian oil, and expectations of new business deals between Russia and China.
Putin and Chinese leader Xi Jinping are expected to discuss new energy deals, including the Power of Siberia 2 gas pipeline that would bring gas from the Yamal Peninsula to China. China remains the largest buyer of Russian oil.
The rouble is up 12% against the dollar and 11% against the yuan since April 1, tracking the rise in oil prices and Russia’s energy revenues.
