Malaysian Prime Minister Anwar Ibrahim and Russian President Vladimir Putin sat down in Kazan this week to talk about something that would have seemed fringe a decade ago: cutting the US dollar out of their trade relationship entirely.
The two leaders discussed using the Malaysian ringgit and Russian ruble for bilateral trade during the ASEAN-Russia Commemorative Summit on June 17-18. The conversation centered on mechanisms that would allow the two countries to settle transactions directly in their own currencies, bypassing the greenback that has dominated international commerce since Bretton Woods.
A modest trade relationship with outsized ambitions
Bilateral trade volume sat at approximately $3.2B in 2024, which is a rounding error compared to either country’s total trade activity.
The discussions covered energy cooperation, with an emphasis on stable long-term oil supplies from Russia to Malaysia. Technology sectors including AI and pharmaceuticals were also on the agenda, along with targeted growth areas like halal products and palm oil.
