Putin confirms Russia and China are developing settlement systems together

Russia and China are jointly developing their system for mutual settlements, President Vladimir Putin highlighted at an economic forum.

Sanctions are slowing down the process, Russia’s strongman admitted, after a visit to the People’s Republic, seen as a message of defiance to the West.

Moscow and Beijing seek ways to bypass sanctions on payments

Russia and China are working together on their system for settlements, Putin said during the plenary session of the Eastern Economic Forum (EEF), held in the city of Vladivostok. Quoted by the TASS news agency, he stated:

“The payment system requires additional improvement. We are working hard on this, financial institutions are working, at the highest level and on a commercial basis.”

Current challenges stem from the need to “respect the interests” of financial institutions that are under sanctions pressure, the Russian head of state clarified, while also assuring that “there is a solution, of course.”

Putin declined to elaborate further, indicated he wouldn’t want to “create any difficulties for future decisions” with his comments.

The Russian leader made these statements on Friday while discussing travel between the two nations that have been strengthening ties, both political and economic, amid high tensions with the West over the war in Ukraine and international trade.

Speaking a day earlier, after returning from a summit with President Xi Jinping, Putin thanked the Chinese leadership for unilaterally abolishing visas for Russians.

“It is not an ordinary decision. It affects, without exaggeration, hundreds of thousands, if not millions, of our citizens,” he said at a meeting in Vladivostok with Li Hongzhong, vice chairman of the permanent organ of China’s legislature and high-ranking Politburo member.

“Of course, Russia will reciprocate this friendly gesture,” Putin emphasized, announcing the Russian Federation will introduce a visa-free regime for Chinese citizens, too.

Russia’s Mir cards and QR codes are also on the menu

Like many other aspects of private and business life, financial restrictions imposed on Russia over its attack on neighboring Ukraine have significantly affected travel arrangements and choices for Russians.

The same is valid for foreign currency restrictions enforced by Moscow itself to prevent capital flight in the wake of the launch of the full-scale invasion in 2022.

However, it turns out that both cryptocurrency holdings and bank card balances are not subject to the limits and declaration rules that apply to fiat cash, as recently reported by Cryptopolitan.

While the Russian government is far from legalizing or promoting crypto payments, with cross-border trade settlements being the notable exception, it has been actively pushing its own credit card and QR code systems, and more recently, the digital ruble, which will rely on these as well.

Russia is also trying to open the door to use Mir cards and QR codes for payments in China, according to the CEO of VTB Bank, Andrey Kostin.

Quoted in a TASS report from Beijing earlier this week, the banker explained this would be easier in the case of QR codes as they do not directly involve the banking system, which “may be sensitive.”

Speaking to the Russia-1 TV channel, he elaborated:

“Here we are currently working in one of the most promising areas, I think, the use of QR codes, as in China, practically, it is the number one payment instrument.”

Kostin pointed out that bank cards are not that popular in the Asian country, but remarked that Russia may, nevertheless, see demand for the Mir card.

Travel and tourist flows between the two countries have been growing, the bank executive pointed out.

“The Chinese have their own card, and we also need to actively work on this. We are moving towards it. The demand is there, and it will generate results,” he insisted.

KEY Difference Wire: the secret tool crypto projects use to get guaranteed media coverage