Putin Says: We Will Dump The US Dollar

By Theodore Shoebatdollar-exploding

Putin has drafted a bill, the objective of which will be to neutralize the US dollar and the euro from trade in between the Common Wealth of Independent States (CIS):

Russian President Vladimir Putin has drafted a bill that aims to eliminate the US dollar and the euro from trade between CIS countries.

This means the creation of a single financial market between Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and other countries of the former Soviet Union.

“This would help expand the use of national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity of domestic currency markets”, said a statement from Kremlin.

The bill would also help to facilitate trade in the region and help to achieve macro-economic stability.

Within the framework of the Eurasian Economic Union (EEU) the countries have also discussed the possibility of switching to national currencies. According to the agreement between Russia, Belarus, Armenia and Kazakhstan, an obligatory transition to settlements in the national currencies (Russian ruble, Belarusian ruble, dram and tenge respectively) must occur in 2025-2030.

Today, some 50 percent of turnover in the EEU is in dollars and euro, which increases the dependence of the union on countries issuing those currencies.

Outside the CIS and EEU, Russia and China have been trying to curtail the dollar’s dominance as well.

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One Comment

  1. Iran has been dickering with Putin for a few years, for Russian radar directed anti-aircraft systems. Putin has held Iran at arm’s length in the hope that sanctions against Iran would somehow be relaxed. In this case, Obama didn’t disappoint. Putin wants assurance that Russia will be paid for the military hardware Iran wants to buy from Russia. Unless the Russian bill is paid, Iran won’t be receiving those air defense systems, etc.
    On the other hand, Putin threatens to “dump U.S. dollars,” which if he did so, he’d negate any payment Iran could make from the U.S. dollars it’ll receive via Obama’s and Kerry’s stupidity.(150 billion $$)
    So, Putin is probably just venting because while he has hoped that Obama, through his ignorance, would weaken the USA, for Putin’s purposes Obama has weakened us, but not enough.
    The USA still stands in the way of Russia’s quest to be a super-power. It thought it would challenge a weakened U.S. Navy by adding aircraft carriers to the Russian fleet. But, Russia lacked the technology and contracted the building of the carriers to France. The deal with France went “belly-up,” and there are now two unfinished aircraft carriers in France for sale. The bottom line is that Russia fancied itself as Europe’s gas station, but such energy has been so reduced in value that Russia hadn’t planned for. Oil sells in the $45 range, liquid gas also took a hit. The USA became a major supplier of energy, Saudi Arabia adjusted to be more competitive, the Russians now worry that Europe, which once was at the mercy of Gazprom, the big Russian energy company, is no longer the dominator Moscow thought it would be. Now, Putin seeks to claim oil finds in the North Pole by declaring it part of Russia. A power play that won’t work.
    Russia exports not much else than energy, it was complacent with oil at $100 plus per barrel. That’s not reality at $45,and Mr. Putin is putting on a show to stir Russian nationalism. It explains fighting in Ukraine and saber-rattling at the three small Baltic nations who’re members of NATO.

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