Russian Fertilizer Producers Association suggested using Chinese payment system for fertilizer trade
Andrey Guryev, who is the head of the Russian Fertilizer Producers Association (RFPA) and the Russian-Brazilian Business Council, suggested that fertilizer producers from Russia use China International Payments System (CIPS), the Chinese system of cross-border interbank payments. This will increase the share of payments in yuan. This proposal was made during the Russian-Brazilian business dialogue held at the SPIEF’23.
Andrey Guryev noted that he would like to transfer trade settlements to the currencies of countries friendly to Russia, including the Chinese yuan. Brazilian counterparts will have to establish direct correspondent relationships with Chinese banks. As part of the strategic partnership between Russia, Brazil and China, it is necessary to expand the existing swap lines between central banks. This will help increase liquidity in the Brazilian real-yuan and ruble-yuan currency pairs.
According to experts, payments in Chinese yuan account for 20-25% of Russian fertilizer exports today.