Russia pivots to East and South to offset Western sanctions

Russia is increasingly shifting its economic focus toward the East and the Global South to mitigate the impact of Western sanctions. This strategic pivot is being facilitated through strengthened cooperation within the Shanghai Cooperation Organisation (SCO).

During a meeting of the SCO Council of Heads of Government in Dushanbe, it was noted that Russian Prime Minister Mikhail Mishustin’s participation marks a significant step in overcoming attempts at economic isolation. Trade exchange between Russia and SCO member states has exceeded 33 trillion rubles, representing an 18 percent increase in the first half of the year.

A major shift in financial transactions has also been observed, with a growing majority of mutual payments now conducted in national currencies. This contrasts with five years ago, when such payments accounted for only 50 percent of total transactions.