Dollar Usage Not Against Our Policy: Russia Clarifies

The Kremlin on Saturday clarified that conducting transactions in US dollars with the United States does not conflict with Russia’s strategic policy of promoting national currencies in international trade. Following Western nations’ freezing of Russia’s dollar and euro accounts after the 2022 Ukraine conflict, Moscow had increasingly shifted toward alternative currencies. However, using the US dollar, the national currency of America—in direct trade with Washington is not contrary to Russia’s core principles, the Kremlin explained.

In an interview with government news agency TASS , Kremlin spokesperson Dmitry Peskov made these key remarks. While Russia aims to reduce the dollar’s global dominance (de-dollarisation), he noted, the dollar remains America’s sovereign currency. Therefore, its use in transactions with Washington aligns with Russia’s “national currency swap” policy. Peskov emphasised that using the dollar in Russia-US trade will not affect relationships with current partners.

His comments come amid reports of ongoing discussions to restore economic cooperation between Russia and the United States . Peskov asserted that Russia has never voluntarily abandoned the dollar; rather, Washington imposed strict sanctions to block its use. He suggested that if the US eases its sanctions in the future and the dollar becomes attractive again for investments, Russia may use it alongside other currencies.

However, Peskov cautioned that reintegrating the dollar would not be straightforward. He pointed out that national and alternative currencies have gained strength in the international market, creating stiff competition for the US currency. Russia has already significantly reduced its dollar reliance by conducting most of its trade with China in yuan and with India in rupees.

In recent years, Russia has insisted on receiving payments for its oil and natural gas exports in Russian rubles instead of dollars , mainly due to Western banks freezing Russian funds. This approach has not only strengthened Russia’s financial system in collaboration with friendly nations but also advanced the creation of a dollar-free economic framework.

Officials confirmed that Russia’s large-scale trade with countries like India and China now occurs in local currencies . Analysts interpret the Kremlin’s remarks on dollar usage as part of efforts to improve relations with the United States. Nevertheless, the Kremlin reiterated its commitment to national sovereignty and the use of national currencies.