The president of Russia, Vladimir Putin, assured this Wednesday that the United States itself endangers the dollar as a world reserve currency, using it as a tool for its sanctions policy.
“It seems to me that the US commits A big mistake by using the dollar as a sanction tool. And it does so because they prevent the settlement in dollars of the products of the sanctions, “said the president during an exclusive interview with the US network CNBC, granted in the framework of” Russia’s energy week “that started this Wednesday in Moscow.
The head of state pointed out that in this situation, countries like Russia and others that are under sanctions from Washington are forced to move to settlements in other currencies.
On the other hand, Putin pointed out that other countries choose to reduce the percentage of the dollar in their reserves and use it less in transactions with their counterparts, seeing the current situation and fearing that this currency could be used against them. “The result is that even the closest partners and allies of the United States are reducing the part of the dollar in their reserves, it is a statistical fact, “he concluded.
We are not interested in completely abandoning dollar payments. “
Despite all this, the Kremlin tenant ruled out the idea of giving up the dollar. “We are not interested in completely abandoning payments in dollars, and we remain satisfied with, for example, payments for energy resources in dollars, mainly for oil,” he stressed, adding that it would be the United States itself that could undermine confidence. in your own currency.
Apart from the political aspects, economic decisions such as the resolution of the US Congress to raise the debt ceiling also affect the attractiveness of the dollar, which assumes the growth of inflation, the president estimated.
“And for the first time, perhaps, in history, inflation in the United States is increasing at a rate that has probably not been seen in a long time. These are economic reasons that, in one way or another, are undermining confidence in the currency. Everyone is wondering: Now what? What will the US economic authorities do with this huge debt? “
Cryptocurrencies to arrange oil supplies?
On the other hand, the president referred to the issue of the future of cryptocurrencies. In particular, he highlighted that “it is still premature” to speculate on the possibility of using cryptocurrencies in contracts for the supply of oil, since they are “very unstable“.
“The cryptocurrency is not yet backed by anything, […] it can be used as a means of payment, of course, but trading oil, let’s say, or other raw materials and energy sources, I think it’s still too early to talk about it, “Putin said.
Situation in energy markets
Speaking about attempts to stabilize the global energy market, the president stressed that Russia together with its partners within the Organization of the Petroleum Exporting Countries and allies (OPEC +) have so far managed to find “balanced and acceptable solutions for all parties.” However, Putin admitted that the dialogue is carried out “quite harshly”, where the counterparts argue with each other, looking out for their interests.
On the other hand, the head of state endorsed the efforts of countries such as Saudi Arabia or the United Arab Emirates to diversify their economies, including their plans to develop green energy. He predicted that new energy sources represent “a very promising area” for cooperation between Russia and OPEC + countries.
AUKUS “compromises regional stability”
Regarding the creation of AUKUS, the recent alliance between Australia, the US and the United Kingdom, Putin stressed that this new bloc “compromises regional stability.” The politician mentioned that “being friends with each other is fine,” while “being friends against someone is wrong“, referring to the trilateral pact that, among other aspects, aims to counteract the growing influence of China in the Asia-Pacific region.
However, he expressed his hope that the situation in the area will not unfold “in some unforeseeable scenario”, and that it will not lead to “additional stresses” in the region.