Yesterday, Putin observed the necessity of increasing Russia’s economic sovereignty and independence from the petrodollar system, stressing that the West is boosting this process through its economic bullying in the form of sanctions. TASS reports:
MOSCOW, May 8. /TASS/. Russian President Vladimir Putin considers necessary to strengthen the national economic sovereignty and anti-Russian sanctions are helpful in this aspect.
“We need to increase the level of our economic sovereignty but this is not a straightforward decision,” the head of state said. “Oil is traded in dollars on the exchange,” Putin said. “Certainly, we are thinking about what we need to do in order to get free of this burden. Furthermore, our partners are helping us by introducing all these unlawful restrictions and violating principles of the global trade, because the whole world sees the dollar monopoly is unreliable; it is dangerous for many, not only for us,” he added.
“This is not merely a separation from the dollar; this refers to the need of strengthening our economic sovereignty,” Putin said.
“Our gold and foreign currency reserves undergo diversification and we will continue to do it,” he added.
Generally speaking, any country that wants to buy oil needs to buy dollars first, with which to accomplish the commodity purchase, which is a major aspect of the dollar’s global hegemony in international trade.
The US, in attempting to maintain this, has been resorting to international bullying in its sanctions and financial practices, which, continuing down this path, is only ensuring America’s eventual irrelevance on the global economical stage.
We have seen how this is happening around the world, with China’s introduction of the Petroyuan, Venezuela’s petro, and with bilateral trade deals and banks being erected so as to side step both the dollar and American economic sanctions. Putin cites Russia’s gold and foreign currency reserves, and his intention to do something about Russia’s dependence on the American dollar backed oil system.