diff --git a/meta/classes-recipe/cargo_common.bbclass b/meta/classes-recipe/cargo_common.bbclass
index c1fe6a24ed6..a21c5423642 100644
--- a/meta/classes-recipe/cargo_common.bbclass
+++ b/meta/classes-recipe/cargo_common.bbclass
@@ -226,6 +226,29 @@ oe_cargo_fix_env () {
 	export HOST_CFLAGS="${BUILD_CFLAGS}"
 	export HOST_CXXFLAGS="${BUILD_CXXFLAGS}"
 	export HOST_AR="${BUILD_AR}"
+
+	# Tell crates to use system libraries instead of vendoring C code
+
+	# git2-rs
+	export LIBGIT2_NO_VENDOR="1"
+
+	# libssh2-sys
+	export LIBSSH2_SYS_USE_PKG_CONFIG="1"
+
+	# libsqlite3-sys
+	export LIBSQLITE3_SYS_USE_PKG_CONFIG="1"
+
+	# openssl-sys
+	export OPENSSL_NO_VENDOR="1"
+
+	# pkg-config-rs. Crates can still override the dynamic linking
+	# but try to dynamically link to system libraries.
+	# https://docs.rs/pkg-config/latest/pkg_config/
+	export SYSTEM_DEPS_BUILD_INTERNAL="never"
+	export PKG_CONFIG_ALL_DYNAMIC="1"
+
+	# zstd-sys
+	export ZSTD_SYS_USE_PKG_CONFIG="1"
 }
 
 EXTRA_OECARGO_PATHS ??= ""
diff --git a/meta/recipes-devtools/rust/cargo_1.96.1.bb b/meta/recipes-devtools/rust/cargo_1.96.1.bb
index 16f8a76310b..179ed2bbb56 100644
--- a/meta/recipes-devtools/rust/cargo_1.96.1.bb
+++ b/meta/recipes-devtools/rust/cargo_1.96.1.bb
@@ -72,15 +72,6 @@ do_install:append:class-nativesdk() {
 
 FILES:${PN} += "${base_prefix}/environment-setup.d"
 
-# Disabled due to incompatibility with libgit2 0.28.x (https://github.com/rust-lang/git2-rs/issues/458, https://bugs.gentoo.org/707746#c1)
-# as shipped by Yocto Dunfell.
-# According to https://github.com/rust-lang/git2-rs/issues/458#issuecomment-522567539, there are no compatibility guarantees between
-# libgit2-sys and arbitrary system libgit2 versions, so better keep this turned off.
-#export LIBGIT2_SYS_USE_PKG_CONFIG = "1"
-
-# Needed for pkg-config to be used
-export LIBSSH2_SYS_USE_PKG_CONFIG = "1"
-
 # When building cargo-native we don't have cargo-native to use and depend on,
 # so we must use the locally set up snapshot to bootstrap the build.
 BASEDEPENDS:remove:class-native = "cargo-native"