Russian children’s goods retail chain signs its first contract with an Indian supplier in rubles

The Russian children’s goods network Detsky Mir (Children’s World) has signed its first contract with a foreign supplier – denominated in rubles, Interfax reported.

The Russian children’s goods network Detsky Mir (Children’s World) has signed its first contract with a foreign supplier – denominated in rubles, Interfax reported.

An agreement for the supply of children’s goods, totaling 100 million rubles, was signed with the Indian company Fashion Square. According to the retailer, all settlements with the contractor are to be made ​​in rubles, thus minimizing the effects of currency fluctuations.

According to Vladimir Chirakhov, general director of Detsky Mir, by making payments in rubles, both sides will reduce their currency risks and increase the speed of settlements. 

Fashion Square will supply 260,000 pieces of children’s clothing to the Detsky Mir network.

Russia continues on its course to phase out the use of US dollars in bilateral settlements with partners, and move to the use of national currencies.

In 2014, Dmitry Rogozin, Deputy Prime Minister of the Russian Government, speaking at the Eighth Russian-Indian Trade and Investment Forum, noted that in their mutual economic relations, India and Russia should abandon the use of third-party currencies. “Together, we need elaborate and carefully consider the creation of a fast, easy, and intelligible mechanism to work in our own national currencies,” said Mr. Rogozin.

Turkey and Vietnam may also soon move to using rubles when making settlements in major joint-projects with Russia.

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