Wednesday, May 9, 2018

Putin begins new term in office by declaring Russia needs to focus on getting the world to ditch the Petrodollar completely

Whether it was President Donald Trump's move to disengage from the Iran deal, or the potential fear of even more U.S. sanctions in the future, Russia's President Vladimir Putin is kicking off his new term in office by declaring that Moscow needs to focus on getting rid of the dollar in the oil trade.

Beginning his new term in office, the Russian President has made disengaging the US currency from the Russian economy one of his goals, stating that the dollar monopoly is dangerous. The announcement comes as Moscow and Beijing attempt to step up bilateral oil sales and financial cooperation. 
Addressing the Russian Parliament following his inauguration, Vladimir Putin called for the “unburdening” Russia’s economy from the dangerous monopoly of the US dollar in the pricing of oil in global commodities markets.  He indicated that the underlying reasons were security-related. 
“We used to behave na├»vely, but now we see that the WTO [the World Trade organization] rules are all too often broken, the restrictions are imposed for political reasons, which they call sanctions. Plus more and more of them are imposed to secure its favorite competitive advantages,” Putin said. 
He stated that the new "restrictions," breaking the world trade principles, make the world see that monopoly of the US dollar is dangerous for many regions. According to him, de-dollarization should be promoted on principle, in order to preserve the country’s sovereignty. Putin didn’t name an alternative currency in his speech. – Sputnik News
For the most part Russia has been able to grow despite the sanctions imposed upon them back in 2014 by the U.S. and Europe following the Ukrainian coup which was falsely attributed to Putin and Moscow.  And with President Trump showing signs that U.S. foreign policy will be done more with the stick versus the carrot, the best weapon in Russia's arsenal is to work towards ending the dollar's dominance in the oil markets, and entice other nation's to use either the Ruble, Yuan, or their own sovereign currencies in the purchasing of energy.

0 comments:

Post a Comment