Putin Touts 90% Dollar-Free CIS Trade as Russia Sidesteps Western Sanctions

Russian President Vladimir Putin used a summit of former Soviet republics in Turkmenistan on Friday, Oct. 9, to promote what Moscow sees as a financial lifeline against Western sanctions – claiming that 90% of Russia’s trade settlements with Commonwealth of Independent States (CIS) countries now take place in national currencies rather than dollars or euros. The announcement highlights how the Kremlin is using its post-Soviet economic networks to reduce reliance on Western financial systems while sustaining trade during its war against Ukraine.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official. A $110 billion trade network beyond the dollar Speaking at the summit in Avaza, a resort on Turkmenistan’s Caspian coast, Putin said Russian trade with CIS countries exceeded $110 billion in 2025 and continued growing in 2026. He praised the development of a “stable financial infrastructure” independent of foreign influence, arguing that it allowed economic cooperation to continue despite outside pressure. “It allows us to deepen economic cooperation regardless of foreign influence,” Putin said. The shift toward national currencies has become increasingly important for Russia since Western governments imposed sweeping financial restrictions following Moscow’s full-scale invasion of Ukraine in February 2022. Putin also urged CIS members to remove remaining obstacles to regional commerce. “Barriers should be lifted,” he said. How former Soviet trade routes help Russia evade sanctions The risks extend beyond the currencies used to settle transactions. Other Topics of Interest Trump Says He and Putin Have Cut Diesel Deal, Zelensky Accuses Washington of ‘Weakness’ Zelensky said any easing of sanctions without a lasting de-escalation deal would prove as “obvious weakness” that allows Russia’s war to last longer. Western governments have repeatedly identified Central Asia and the South Caucasus as potential routes for restricted goods entering Russia through third countries. The researchers identified two methods: rerouting sanctioned products through neighboring countries and misreporting the destinations of shipments passing through Russia. They estimated that these channels offset roughly one-third of the decline in direct European exports to Russia in restricted product categories during 2022–23. The goods involved included industrial equipment and dual-use products with potential military applications. A shrinking club of former Soviet republics The economic figures contrast with the steady erosion of the CIS’s political influence. Established in December 1991 following the collapse of the Soviet Union, the organization was designed to preserve cooperation among newly independent republics. Georgia formally withdrew in 2009 following Russia’s invasion the previous year. Ukraine, one of the CIS’s founding states, gradually dismantled its participation after Russia’s annexation of Crimea in 2014 and accelerated its withdrawal from remaining agreements following the full-scale invasion in 2022. Moldova has also moved toward a definitive break. Armenia, meanwhile, has increasingly diversified its security and diplomatic relationships after years of dependence on Moscow. Across Central Asia, governments are expanding economic cooperation with China, the European Union and Turkey while maintaining important commercial ties with Russia. For Putin, however, the CIS remains a platform to demonstrate that Moscow retains regional influence despite its confrontation with Ukraine and the West. Iran joins the gathering Iranian President Masoud Pezeshkian attended the summit as a special guest, reflecting Moscow’s growing cooperation with another government facing extensive Western sanctions. Putin and Pezeshkian met separately on Thursday, Oct. 8, discussing bilateral relations and the ongoing conflict involving Iran. Pezeshkian thanked Moscow for opposing what he described as US unilateralism, while Putin offered Russian assistance in efforts to resolve the Middle East conflict. Russia and Iran have expanded military and economic cooperation since Moscow invaded Ukraine, with Iranian-designed drones becoming an important part of Russia’s attacks. The next CIS summit will take place in Bukhara, Uzbekistan, in October 2027, with Azerbaijan serving as co-chair before assuming the presidency and hosting the summit in 2028. Belarusian President Alexander Lukashenko welcomed Azerbaijan’s decision as a “historic moment” and expressed hope that Armenia would follow in 2029 – despite Yerevan’s growing distance from Moscow. Kyiv Post is Ukraine’s first and oldest English news organization, reporting since 1995. Its international reach – 90% of readers are outside of Ukraine – make it truly Ukraine’s global voice.