Russia’s Vlad Putin admits that despite all his efforts, US dollar is still king

Vladimir Putin just acknowledged the reality he’s been fighting against. Despite BRICS’ best efforts to escape the grip of the US dollar, it remains the most powerful tool in global finance.

Speaking at the annual summit he’s hosting in Kazan, Putin pointed out that the United States has been using the dollar as a political weapon, punishing countries that don’t follow its rules. In his own words:

“The dollar is being utilized as a weapon. We truly perceive this reality. I believe it is a significant error on the part of those who engage in this practice.”

The Russian president argued that America, through its unilateral sanctions, has hurt Russia and also jeopardized the financial independence of any country that might find itself on the receiving end of such actions.

Russia and China ditch the dollar

Russia and China have made a big move in reducing their reliance on the US dollar. According to Putin, roughly 95% of trade between the two countries is now conducted using the Russian ruble and the Chinese yuan.

By doing this, Russia and China are attempting to move away from Western-dominated financial systems, something that Putin has been pushing for aggressively. He wants to expand this effort beyond him and China.

Putin’s calling on BRICS nations to find an alternative to traditional Western financial networks, like SWIFT. He told the world leaders that:

“It’s not us who refuse to use the dollar. But if they don’t let us work, what can we do? We are forced to search for alternatives.”

BRICS and a new global payment system

Putin also proposed the development of a new BRICS investment platform, designed to boost economic cooperation between member states and provide financial resources to developing nations in the Global South.

He believes this platform would be a powerful tool for supporting the economies of BRICS countries. But not everyone is on board with Putin’s ideas. Some BRICS members, namely Brazil and India, have shown concerns.

They are wary of the bloc becoming an anti-Western alliance dominated by China, which could hurt their own relationships with America. 

Meanwhile, at the summit, Putin rolled out the red carpet for leaders who are interested in breaking free from US financial dominance. Among these leaders was Turkish President Recep Tayyip Erdogan.

What made Erdogan’s appearance significant was that he was the only leader of a NATO country to attend the summit. The man famously likes to call Putin a “dear friend.”

This doesn’t always sit well with his NATO allies, but Erdogan seems determined to maintain strong ties with both Russia and the West.

For Putin, it showed that despite the West’s attempts to isolate Russia following its invasion of Ukraine, the Kremlin is far from being a global outcast.

At the same time, news spread that North Korea has sent troops to Russia to support its war efforts in Ukraine. This alliance is surprising, considering Russia once joined sanctions against North Korea to stop its nuclear ambitions.

It just goes to show how far Putin is willing to go to gather support from a diverse range of countries in the face of global opposition. Just a few months back, he was pictured going on a drive with North Korea Supreme Leader Kim Jong Un.

Are India and China mending relations?

Another notable instance at the summit is Chinese President Xi Jinping and Indian Prime Minister Narendra Modi meeting to iron out their own issues after years of tension.

The two hadn’t held formal talks in over five years, but this summit provided a platform for them to agree on important issues.

Xi emphasized that cooperation between China and India is in the best interests of both nations, while Modi agreed that maintaining peace and stability along their disputed border should be a priority.

They talked about the need for mutual trust and respect, which suggests both countries are willing to mend their relations, which would make Putin’s mission a lot easier.