Russian President Vladimir Putin criticized the US sanctions, noting that they are pushing global economies away from the US dollar and leading to a gradual decline in the use of the US dollar for trade and international reserves. He noted that Russia now conducts 95% of its foreign trade in national currencies due to these sanctions. Putin highlighted the growing economic influence of the BRICS countries, which have surpassed the G7 in terms of global GDP share and are a significant contributor to global economic growth.
Putin criticizes US dollar sanctions, highlights BRICS economic dominance
Russian President Vladimir Putin has criticized US sanctions that restrict Russiaâs access to the US dollar, noting that these actions are causing a global shift away from the US currency. During a BRICS press conference on Friday, Putin commented:
All countries around the world are now considering whether to use the dollar or not if the United States restricts the use of the dollar as a common international unit of payment due to political considerations.
âThe volume of dollars is decreasing little by littleâin payments and in reserves,â Putin described, adding that even traditional US allies are reducing their dollar reserves as a result. Putin also pointed to China as another country affected by sanctions, stressing: âAnd what is happening to Chinaâone sanction after another. And this has nothing to do with politics, this has to do with the growth of the Chinese economy and attempts to hinder this growth with various sanctions, which are politically motivated.â
Putin stressed that these restrictions have forced Russia to shift 95% of its trade with foreign partners to national currencies. Stressing that this change was due to external sanctions, Putin clarified, âFinancially, we did not abandon the dollar as a common currency; we were denied its use.â The Russian leader continued:
But today 95% of all Russian foreign trade is conducted with our partners in national currencies. They do it themselves.
Putin dismissed Western predictions that the Russian economy would collapse as a result of abandoning the dollar, declaring, âWestern countries think that âeverything will collapseâ in Russia when it abandons the use of the dollar. No, nothing has collapsedâ[it] is developing on a new basis.â
At the BRICS Business Forum held the same day in Moscow, Putin discussed the growing global economic influence of the BRICS nations, which now surpass the G7 in terms of share of global GDP. âFor example, take 1992â[the share of] the Group of Seven was 45.5%, and in the same year, the BRICS countries [accounted for] 16.7% of global GDP. And now? In 2023, our association [accounted for] 37.4%, and [the share of] the Group of Seven is 29.3%,â Putin stated. He highlighted the growing role of the BRICS as the main driver of global economic growth, predicting that this trend will only continue. Putin added:
The gap is growing and will continue to grow, it is inevitable.
According to Putin, the BRICS countries have contributed more than 40% to global GDP growth in recent decades, with an average economic growth rate expected to be 4% this year, compared to just 1.7% for the G7 countries. âThis is higher than both the G7 countriesâitâs only 1.7%âand the global rate. The global rate would be 3.2%,â Putin explained. He also noted that the BRICS countries dominate key markets such as energy, metals, and food, which are essential for sustainable global growth. Furthermore, the Kremlinâs press service revealed on Monday that Russia and Iran have switched to using national currencies for more than 96% of their joint payments.
