Russia Replaces Dollar with Ruble, Local Currencies in All Arms Trade

Russia has fully eliminated the U.S. dollar from its arms trade, shifting all defense export transactions to the ruble or the buyer’s national currency, according to Rostec State Corporation’s General Director Sergey Chemezov.

The country's military export order portfolio has now reached $60 billion, marking a $5 billion increase from the previous year.

In an interview with Razvedchik magazine, Chemezov stated, “We have abandoned the dollar in settlements; most contracts are concluded in rubles or national currencies.” He noted that despite sanctions, military-technical cooperation with countries in the Middle East and Global South remains active.

The official also spoke about how Russia accelerated its weapons production. “Our factories are focused on meeting the needs of the Russian army. There is a war going on, the needs are very high—no need to explain. As a result, along with current export shipments (which continue despite everything), deferred demand is being formed. Over the three years of the special operation, our enterprises have significantly increased their production capacity and are ready to fulfill both state and export orders,” he said.

Chemezov added that Russia’s arms exports are not limited to finished products. Rostec is engaged in technology transfer, localized production, and joint development agreements. For example, a recent deal with India covers the licensed production of engines for Indian T-72 tanks.

The transition away from the dollar comes amid ongoing Western sanctions and Russia’s broader push for strategic autonomy in defense and technology. “There is no longer any trust in [Western partners] and there never will be,” Chemezov said, explaining the rationale behind restructuring international partnerships.

According to him, Russian defense manufacturers have significantly expanded production capacity since the start of the conflict in Ukraine. Rostec now accounts for over 70% of Russia’s arms exports, with Chemezov asserting that nearly all displayed systems at IDEX 2025, including the T-90MS and Pantsir-SMD-E, have been tested in combat.

Chemezov also addressed Russia’s military production resilience. He said the corporation was initially formed to revive the struggling defense sector in 2007, which had been suffering from bankruptcies and talent loss. Rostec, which employs over 700,000 people, now produces a wide range of civilian and military technologies, contributing over 3 trillion rubles in revenue last year.

Discussing foreign equipment captured during combat, Chemezov said Russian specialists study it but have not identified any breakthrough innovations. “The German Leopard tank and American Abrams are interesting machines, but we haven’t found anything worth adopting.” He added that Western vehicles often suffer from design complexity and logistical challenges on the battlefield.

In terms of innovation, Rostec is increasingly focusing on artificial intelligence and digital technologies. While civilian applications are expanding, Chemezov cautioned against giving machines too much independence, particularly in defense systems.  “The decisive vote must remain with humans,” he said.

Under a new strategy extending to 2036, Rostec aims to diversify its portfolio with increased emphasis on civilian innovation, while maintaining a core focus on national defense.

Rostec plans to recruit 160,000 new employees by 2028, including 30,000 engineers. The company collaborates with over 200 colleges and 140 universities to train specialists and expose students to high-tech careers.