The Kremlin on Saturday said Russia was working on a new system of economic relations with other countries as the U.S. dollar-based mechanism proves to be “unreliable, false and dangerous.”
Speaking at a press briefing in Moscow, Kremlin spokesperson Dmitry Peskov said there is no need to bother about the dollar system weakening since the U.S. itself is undermining it through its actions.
“Russia is building a new system of economic connections because the previous system turned out to be unreliable, false and dangerous. Russia is looking for an opportunity to develop alternatives,” Peskov said.
Russia has consistently criticized the U.S. for using its dominance in the global financial system to impose financial sanctions, such as freezing accounts, prohibiting payments and banning the sale of the dollar, which serves as an international payment currency, and influencing fund allocation through international financial institutions.
The U.S. controls the international system for transmitting information and making payments known as SWIFT, and is home to two of the world’s largest financial institutions, the World Bank and the International Monetary Fund (IMF).
According to President Vladimir Putin, Russia has lived under U.S. sanctions for almost all of its modern history.
However, when Moscow launched its invasion of Ukraine in February 2022, the U.S. and its Western allies imposed harsh sanction packages and Russia found itself almost cut off from the global financial system.
In such circumstances, Moscow began looking for alternatives that would allow it to ensure international payments and trade with other countries, which Washington viewed as a “challenge.”
