Russia proposes deal with Turkey to ditch US dollar for lira-ruble trade amid currency crisis

Russia proposes deal with Turkey to ditch US dollar for lira-ruble trade amid currency crisis
Moscow is still interested in trading with Ankara using the Russian ruble and Turkish lira, according to the Kremlin. Both currencies have been falling against the greenback, with lira setting new record lows every day.

“The issue of using national currencies in bilateral trade operations is a topic that has been raised by the Russian side for a long time and consistently at various levels, including at the top level,” said Kremlin spokesman Dmitry Peskov.

“This is what we are striving for in our bilateral trade and economic relations, and what has been repeatedly mentioned at the bilateral Russian-Turkish talks,” he added.

The lira plummeted to a record low of 7.20 against the dollar before strengthening to 6.16 on Wednesday amid mounting pressure from new US sanctions. Washington began to apply economic pressure on Ankara after the detention of American pastor Andrew Brunson in Turkey. Brunson is accused of aiding the failed military coup in 2016. He is facing 35 years in a Turkish prison.

The US also introduced new sanctions against Russia last week over the poisoning of double-agent Sergei Skripal. Washington has refused to provide any proof to support allegations of Moscow’s responsibility for the incident. The Russian ruble fell to its lowest level since 2016 against the dollar following the news.

According to the Kremlin spokesman, the financial and economic situation in Turkey was not yet affecting the implementation of joint projects with Russia.

“I do not know that this situation may somehow affect the development of projects. Everything is proceeding as usual,” Peskov told reporters.

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