Prime Minister States Russia Will Create a National Domestic Payment System

Russia is embarking on a mission to achieve independence from the current financial institutions. At the Moscow Financial Forum, Prime Minister Mikhail Mishustin highlighted this system is the only opportunity for Russia to reach a fair principles-based international trade platform.

Prime Minister of Russia, Mikhail Mishustin, has announced the country's plan to create a domestic payment system for conducting trade and international transactions without being subject to current disruptions. This effort will involve multiple institutions and aims to establish a principles-based system as an alternative to the current one managed by Western institutions.

During his speech at the Moscow Financial Forum, Mishustin highlighted the significance of this system in enabling Russia to achieve a fair and balanced platform for international trade. He stated that the goal is to create a system that ensures equality among countries, maintains the confidentiality of payments, and facilitates instant transactions at minimal costs.

This announcement comes amid ongoing sanctions and disruptions that have affected Russia's trade relationships with countries like Turkey and China. In 2023, Mishustin reported that the majority of settlements between Russia and China were carried out in their respective national currencies, with an estimated 70% of transactions using this method.

According to Mishustin, the new domestic payment system will serve as an alternative to foreign systems and provide a broader range of functions and features. It is expected to enhance the settlement experience for Russian entrepreneurs and their international partners.

Mishustin's statement did not explicitly mention whether the system being created would be distinct from BRICS Pay, a payment network that was recently tested by the BRICS bloc and allows users to make payments via a card that can be activated through a web browser.

Establishing new payment systems is a complex and time-consuming process, not only due to the technical aspects of the network but also because of the inherent distrust towards new implementations of this nature. While setting up the platform itself can be done relatively quickly, mass adoption and usage of the payment system will only occur after multiple test runs that demonstrate its solidity.

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