Sergey Katyrin, President of the Russian Chamber of Commerce and Industry, wrote a proposal to Russian Prime Minister Mikhail Mishustin outlining a list of ideas to improve commercial connections with African countries. The head of the Russian Board of Trade campaigns for alternative payment methods.
Katyrin insists;
“It seems appropriate to instruct the Ministry of Finance, together with the Central Bank, to ensure the conclusion of intergovernmental agreements with African states on the use of national currencies and cryptocurrencies in mutual settlements and payments.”
The official is proposing that the Federal government establish a new export-import bank and a trust fund to support small and medium-sized businesses’ export efforts to Africa. He also wants the Ministries of Industry and Trade and Economic Development to establish trade missions and free trade zones in African countries with the most potential for expanding ties.
Katyrin is encouraging the two departments to develop a new payment settlement process that includes cryptocurrency for both external and internal payments. The method can be used to settle payments for natural resource concessions, investment projects, export operations, and other types of payments. He also advises that a Russia-Africa Trading House be established.
The Russian Federation’s expansion of this type of collaboration with “friendly territories,” according to the Head of the Chamber, is critical. His ideas come as Western sanctions imposed in response to the Ukraine conflict continue to restrict Moscow’s access to global finance and currency reserves held in foreign institutions.
The constraints are persuading Russian officials that crypto-assets can assist the country in re-entering global markets and substituting other national and digital currencies for the US Dollar and the Euro. While the Bank of Russia is wary of utilizing cryptocurrencies to get around sanctions, the Finance Ministry is spearheading the change to legitimize them, claiming that the fines are motivating Russia to build its own crypto market infrastructure.