Presidents Joe Biden (US) and Vladimir Putin (Russia)

President warns US may regret exploiting Dollars as weapon of sanctions

*Russian President Vladimir Putin has said Russia will not stop using the Dollar but has accused the United States of exploiting its currency’s dominance for all manner of sanctions against other countries

Gbenga Kayode | ConsumerConnect

While considering the adoption of other transnational payment methods, Russian President Vladimir Putin has disclosed though Russia does not want to stop using the Dollar, he accused the United States (US) of exploiting its currency’s dominance for sanctions.

Putin warned the currency policy may rebound on Washington (US seat of power).

In St. Petersburg at a videoconference with representatives of international media organisations late Friday, June 4, 2021, the Russian President stated his country has had to adopt other payment methods because the US “uses its national currency for various kinds of sanctions.

United States Dollars

“We don’t do this deliberately; we are forced to do it.”

Putin further noted that settlements in national currencies with other countries in areas, such as defence sales and reductions in foreign-exchange (Forex) reserves held in Dollars eventually will damage the US as the greenback’s dominance declines.

He quipped: “Why do US political authorities do this? They’re sawing the branch on which they sit.”

Earlier, Russia was reported to have announced it would eliminate the Dollar from its oil fund to reduce vulnerability to sanctions, a largely symbolic move as the switch in holdings will take place within the central bank’s reserves.

It was gathered Russia has tried with limited success to shift away from the Dollar for years amid international sanctions over Putin’s 2014 annexation of Crimea and support for separatists in eastern Ukraine, as well as for alleged cyberattacks, election meddling, and espionage operations.

Russia’s expectation at proposed meeting with US President Biden

The Russian leader’s comments came ahead of his first summit meeting with US President Joe Biden June 16, in Geneva, Switzerland.

Although he praised President Biden as one of the world’s most experienced leaders, Putin, nevertheless, said stated that he expects no breakthrough in relations with the US at the talks.

Yet, Putin offered a warning at Friday’s meeting for the US, based on what he said was his own experiences “as a former citizen of the former Soviet Union.”

The Russian President explained: “The problem with empires is that they think they can afford small errors and mistakes, which gradually accumulate.

“There comes a time when they can no longer be dealt with. And the US, with a confident step, a confident gait, a firm step, is walking straight along the path of the Soviet Union.”

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