The contract between Moscow and New Delhi on supplies of Russian S-400 air defense systems will be settled in rubles, according to Russia's Deputy Prime Minister Yuri Borisov.

The move comes as Moscow intensified recent efforts to make de-dollarization of the Russian economy one of the main pillars of its policy. The Kremlin is looking for an alternative to the US dollar in mutual settlements with international partners. The key point of the plan is to make it more profitable for Russian exporters and importers to use rubles instead of dollars.

Earlier this month, President Vladimir Putin said safety and security of the economy was the major driver behind the decision to eliminate the role of the US dollar. The measure reportedly comes amid threats from Washington to cut Russia off from dollar transactions and hit Russia's sovereign bonds with another round of sanctions.