Putin: "Russia moves towards de-dollarization of the economy"

Russian President Vladimir Putin. Photo: Reuters

According to the Russian leader, the alternative to the USD could be a series of currencies of several countries, and the BRICS countries (Brazil, Russia, India, China, South Africa) are also discussing the creation of a new currency for payments within the bloc.

“If such instruments are created, the economy may decouple from the dollar. As soon as this happens, the dollar will face difficult times,” Mr. Putin said.

The Russian President said that the US is forcing many countries around the world to abandon the USD in international payments.

“This is a typical mistake of an empire. Our American friends are losing faith in the dollar as the only currency of payment,” Mr. Putin said.

This is not the first time President Putin has mentioned the need to de-depend the Russian economy on the US currency. Last year, Putin ordered the Russian ruble to be the main currency for transactions at all Russian seaports, instead of the US dollar. This decision forced foreigners to use rubles more.

In May, President Putin said Russia no longer had confidence in the US-dominated financial system since the US imposed unilateral sanctions and violated World Trade Organization (WTO) rules. Mr. Putin said the dollar’s ​​monopoly was unsafe and dangerous for the global economy.

The Russian government is proposing a plan to “de-dollarize” the economy, with the main focus being on helping major Russian exporters gain more profits from using rubles instead of dollars. VTB Bank President Andrey Kostin recently said that Russia will increase the use of other currencies when conducting import-export transactions with foreign countries.