Last week Russian President Putin took steps toward increasing Russia’s economic sovereignty and independence from the petrodollar system. Addressing the West's bullying policies in the form of sanctions on Russia, the Russian leader spoke of the need to "get free of this burden."
Mr. Putin went on to address how Russia is being assisted on the global stage by western nations carrying out unlawful restrictions that impinge on global trade. Russia's leader went on to clarify his point in a statement to TASS:
“This is not merely a separation from the dollar; this refers to the need of strengthening our economic sovereignty. Our gold and foreign currency reserves undergo diversification and we will continue to do it."
In general, countries that buy oil must first purchase U.S. dollars first. This aspect of international trade is the principal reason the United States currency dominates. Russia's president contends 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.
This has been happening around the world, with China’s introduction of the Petroyuan, Venezuela’s Petro, and with bilateral trade deals and banks being erected to sidestep 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.