--- title: "Yuan Retreats: Russia Effectively Abandons Dollar Replacement Amid US Secondary Sanctions Threat" description: "According to the Central Bank cited by Bloomberg, only 22% of Russian exports were paid in yuan in 2026—half the peak of 2024. Chinese banks backed down before the threat of US secondary sanctions, and Russia effectively abandoned replacing the dollar with the yuan." date: 2026-11-11T11:04:17.374Z lang: en url: https://xab.info/en/posts/yuan-retreats-russia-abandons-dollar-replacement tags: [russia, china, yuan, sanctions, trade, central-bank] author: "Darya Fomina" publisher: "XAB.info" --- # Yuan Retreats: Russia Effectively Abandons Dollar Replacement Amid US Secondary Sanctions Threat ![Neon download icon with a downward arrow on a dark background symbolizing financial outflow](https://xab.info/media/2026/11/11/yuan-otstupil-rossiya-otkazalas-ot-zameny-dollara/yuan-otstupil-rossiya-otkazalas-ot-zameny-dollara-1.webp) ## Key Points - In 2026, 22% of Russian exports were paid in yuan—half the peak of mid-2024 - The reason was the retreat of Chinese banks facing the threat of US secondary sanctions after their expansion in June 2024 - Settlements shifted to intermediaries and third countries, pushing costs up to 15–20% of the transaction amount - In trade with Asia, the share of ruble export revenue grew to 69% According to data from the Central Bank of Russia cited by Bloomberg, only 22% of Russian exports were paid for in yuan in 2026—half the peak seen in mid-2024. The publication concludes that Moscow has effectively abandoned attempts to replace the dollar with the Chinese currency in foreign trade. At the same time, total trade turnover with China continues to grow, yet the currency structure of settlements has returned to pre-war proportions: the yuan's share in global payments has dropped to the level preceding the full-scale invasion of Ukraine. ### How the Yuan Became the Main Foreign Currency Following the start of the invasion and the imposition of Western sanctions, the yuan's share in Russian foreign trade rapidly grew to nearly half. The Chinese currency became the most traded on the Russian currency market and surpassed the dollar in terms of bank deposits. By mid-2024, the value of Russian exports paid for in yuan exceeded the value of all shipments to China: buyers from other countries, not just Chinese counterparts, were paying for Russian goods in the Chinese currency. ### The Blow of Secondary Sanctions The turning point came in June 2024, when the US expanded the grounds for applying secondary sanctions against banks and companies doing business with Russia. Chinese banks, fearing they would fall under Washington's restrictions, began freezing payments, delaying them for months, or returning them to senders. As a result, a shortage of yuan emerged in Russia, and the Central Bank was forced to urge banks to restrict lending in the Chinese currency. ### Intermediaries and Rising Costs Some settlement channels still function, yet none of them guarantees the successful processing of transactions. Transfers are increasingly conducted not directly through banks, but via intermediaries and third countries, which significantly increases the cost of settlements. According to logistics company STT Logistics, total expenditures on cross-border payments with China, taking into account commissions and intermediary services, reach 15–20% of the transaction amount. ### Transition to Rubles in the Asian Direction Against the backdrop of restrictions on the yuan, the transition to the national currency has accelerated: according to the Bank of Russia, in trade with Asian countries, Russian companies now receive 69% of export revenue in rubles. Problems have also affected settlements with third countries that previously actively used yuan to pay for Russian exports. Thus, the attempt at de-dollarization via the yuan has run into sanction risks, and Moscow has been forced to restructure the currency architecture of foreign trade toward the ruble and roundabout schemes. ## Fact-Check & Sources - [Попытка России заменить доллар китайским юанем провалилась из-за угрозы вторичных санкций США — Bloomberg](https://novayagazeta.eu/articles/2026/11/11/popytka-rossii-zamenit-dollar-kitaiskim-iuanem-provalilas-iz-za-ugrozy-vtorichnykh-sanktsii-ssha-bloomberg-news) - Primary source: yuan share at 22%, half the 2024 peak; US sanctions expansion in June 2024; yuan shortage and CB call to restrict loans; settlements via intermediaries. - [Кремль хотел отказаться от доллара, но столкнулся с неожиданной проблемой – Bloomberg](https://www.dialog.ua/business/kreml-khotel-otkazatsya-ot-dollara-no-stolknulsya-s-neozhidannoy-problemoy.html) - Confirms 22% and half the share; adds 69% ruble revenue in trade with Asia according to the CB and STT Logistics' estimate of 15–20% payment costs. ## FAQ ### What is the current share of the yuan in Russian export payments? According to the Central Bank cited by Bloomberg, 22% of Russian exports were paid in yuan in 2026—half of what it was at its peak in mid-2024. ### Why did the yuan's share decline? Following the US expansion of secondary sanctions grounds in June 2024, Chinese banks began freezing, delaying, or returning payments out of fear of falling under restrictions. This caused a shortage of yuan in Russia. ### How does business now conduct settlements with China? Through intermediaries and third countries, without guarantees of successful transaction processing. According to STT Logistics, costs for cross-border payments reach 15–20% of the transaction amount. ### What is happening with ruble settlements? In trade with Asian countries, Russian companies receive 69% of export revenue in rubles—the transition to the national currency accelerated amid restrictions on the yuan.