Moscow was refused the option of using the greenback for settlements, the president has said
Russia is not behind the emerging global trend towards dropping the US dollar in trade, President Vladimir Putin told the Eastern Economic Forum in Vladivostok on Thursday.
The event is being attended by members of the BRICS economic bloc, including India and China – both of which are actively using national currencies to settle transactions with Russia.
However, Moscow is not pursuing a “policy of de-dollarization,” Putin said during a plenary session at the forum.
He said the US dollar had become the dominant currency after World War II, when Washington successfully capitalized on the outcome of the conflict. Today, however, the ill-conceived and unprofessional actions of the US government are pushing countries to abandon the reserve currency, he added.
”Russia did not refuse to settle transactions in dollars, rather it was refused this option,” said Putin.
After the outbreak of the Ukraine conflict in February 2022, the US cut off Russia’s central bank from dollar transactions and later banned the export of dollar banknotes to the country as part of an unprecedented sanctions campaign against Moscow.
As a result, Russia and its BRICS partners are now using national currencies in 65% of mutual trade settlements, Putin said.
The BRICS economic bloc was founded in 2006 by Brazil, Russia, India, and China, with South Africa joining in 2011. Russia currently holds the chairmanship of the bloc. Egypt, Ethiopia, Iran, and the United Arab Emirates joined the group at the start of this year. Earlier this week, Türkiye formally applied to become a member.
The United States has been widely accused of using the dollar as a weapon against its rivals by imposing sanctions and freezing assets. Foreign Affairs magazine wrote in June that the sanctions on Russia “undoubtedly left other central banks wondering whether their own dollar-denominated rainy-day funds would be locked up should their governments run afoul of Washington.”
