Faith Nyasuguta
Ethiopia and Russia are advancing discussions on conducting trade in their national currencies, aiming to reduce transaction costs and economic uncertainties, Ethiopia’s ambassador to Russia, Genet Teshome Jirru, revealed in an interview. While still in the early stages, both countries see significant potential for growth in this initiative.
Ambassador Jirru emphasized Ethiopia’s efforts to strengthen economic cooperation with Russia, particularly in enhancing direct coffee exports. He expressed optimism that Ethiopian coffee brands such as Sidamo and Harar will soon be widely available in Russian retail stores.
In addition, Russian car manufacturers, including Lada, Ural, and UAZ, are exploring opportunities to establish production facilities in Ethiopia. Lada, in particular, plans to begin manufacturing electric vehicles by the end of the year. Ethiopia’s upper-middle class and government institutions may also be drawn to the luxury Russian car brand Aurus.
Energy cooperation remains a key area of focus, with Ethiopia and Russia collaborating on nuclear power development. Plans are underway to train experts before launching full-scale construction. Russia is also investing in Ethiopia’s fertilizer production, gold mining, and other critical industries.
Beyond trade and investment, security cooperation between the two nations is expanding. Ethiopia and Russia are working together on cybersecurity, intelligence sharing, and counterterrorism efforts. The ambassador also acknowledged Russia’s broader stabilizing influence in Africa.
Ethiopia was recently added to Russia’s list of African nations whose banks can now trade currencies in the Russian market, alongside Nigeria and Tunisia. The Russian government stated that this policy would enhance the efficiency of direct currency conversion between Russia and its economic partners while reducing reliance on the US dollar.
Ethiopia’s inclusion in BRICS, alongside Russia, Brazil, China, Egypt, India, Iran, South Africa, Indonesia, and the UAE, further aligns it with efforts to move away from dollar dependence. The bloc is actively working toward establishing a more independent global trading system, reducing reliance on Western financial mechanisms.
With deepening financial and economic ties, Ethiopia and Russia are positioning themselves for greater bilateral trade and strategic cooperation, reinforcing their long-standing partnership across multiple sectors.
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