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

Russian President Vladimir Putin highlighted a potential financial advantage against Western sanctions during a summit of former Soviet republics in Turkmenistan on Friday, Oct. 9. He announced that 90% of Russia's trade settlements with the Commonwealth of Independent States (CIS) were now conducted in national currencies, rather than dollars or euros.

The Kremlin aims to lessen its dependence on Western financial systems while sustaining trade during its conflict in Ukraine. At the resort town of Avaza along Turkmenistan's Caspian coast, Putin stated that Russian trade with CIS countries amounted to over $110 billion in 2025 and continued to grow in 2026. He praised the development of a "stable financial infrastructure" independent of foreign influence, enabling economic cooperation to continue despite outside pressure.

Putin urged CIS members to eliminate remaining barriers to regional commerce. Western governments have identified Central Asia and the South Caucasus as possible routes for restricted goods entering Russia via third countries. These channels made up roughly one-third of the drop in direct European exports to Russia in restricted product categories between 2022 and 2023.

The CIS, founded in December 1991 following the Soviet Union's collapse, has seen Georgia, Ukraine, and Moldova withdraw due to Russia's actions in Georgia and Ukraine. Armenia has diversified its security and diplomatic relationships, while Central Asian nations are expanding economic ties with China, the European Union, and Turkey while maintaining commercial links with Russia.

Iranian President Masoud Pezeshkian attended the summit as a special guest, showing Moscow's increasing cooperation with another country facing significant Western sanctions.