Vladimir Putin has just admitted the reality he has been fighting against. Despite the efforts of BRICS countries to rid themselves of the dominance of the US dollar, it remains the most powerful tool in the global financial system.
Speaking at the annual summit in Kazan, Putin pointed out that the US has been using the dollar as a political weapon to punish countries that do not adhere to its rules. In his own words, “The dollar is being used as a weapon. We are well aware of this reality. I believe that those who engage in this practice have made a grave mistake.”
The Russian president argued that the US has harmed Russia through unilateral sanctions and put the financial independence of any country that could become a victim of such actions at risk.
Russia and China abandoning the dollar
Russia and China have taken significant steps to reduce their dependence on the dollar. According to Putin, about 95% of trade between the two countries is currently conducted in Russian rubles and Chinese yuan.
By doing so, Russia and China are attempting to break free from the Western-dominated financial system, which Putin has been actively promoting. He hopes to extend these efforts beyond himself and China.
Putin called on BRICS countries to look for alternatives to the traditional Western financial network, such as a new global payment system. He told world leaders, “It is not us who refuse to use the dollar. But if they don’t let us work, what can we do? We are forced to look for alternatives.”
BRICS countries and the new global payment system
Putin also proposed the development of a new BRICS investment platform aimed at promoting economic cooperation among member states and providing financial resources for the development of countries in the global South.
He believes that this platform will become a powerful tool to support the economies of BRICS countries. However, not everyone agrees with Putin’s idea. Some BRICS member countries, namely Brazil and India, have expressed concerns.
They are worried that the European Union could become a counter-Western alliance dominated by China, which could harm their relationship with the United States.
Meanwhile, at the summit, Putin rolled out the red carpet for leaders interested in breaking away from US financial dominance. These leaders included Turkish President Recep Tayyip Erdogan.
Erdogan’s presence is significant as he is the only NATO leader attending the summit. It is well known that he likes to refer to Putin as a “dear friend,” which has not always pleased his NATO allies, but Erdogan seems determined to maintain strong ties with both Russia and the West.
For Putin, this indicates that despite Western attempts to isolate Russia following the invasion of Ukraine, the Kremlin is far from being a global outcast.
Meanwhile, there are reports that North Korea has sent troops to Russia to support its war efforts in Ukraine. This alliance is surprising considering Russia had previously joined sanctions against North Korea to curb its nuclear ambitions.
This just goes to show how much support Putin is willing to seek from different countries in the face of global opposition. Just a few months ago, he was seen driving with North Korean leader Kim Jong-un.
Are India and China repairing relations?
Another noteworthy example is the meeting between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping. The two leaders had not held formal talks for over five years, but the summit provided a platform for them to reach agreements on important issues.
Xi emphasized that cooperation between China and India is in line with the interests of both countries, and Modi also believed that maintaining peace and stability along their disputed border should be a top priority.
They discussed the necessity of mutual trust and respect, indicating that both countries are willing to repair their relationship, which would make Putin’s mission much easier.
