Russia Says It Is Working to Reduce Dependence on the US Dollar

A senior official from the Russian Foreign Ministry has stated that Moscow is striving to reduce its dependence on the US dollar and conventional credit card systems in response to sanctions imposed by Washington. Trade in products such as oil and gas is primarily conducted in US dollars, and the recently approved sanctions in the US Congress specifically target Russia's energy sector. Sergey Ryabkov, Deputy Foreign Minister of Russia, stated in an interview with 'Moskovskaya Pravda' on August 7 that the need to reduce Russia's dependence on the dollar in oil and gas exports has become a 'vital issue' for Moscow. Mr. Ryabkov said that without finding a solution to this issue, 'we will always be in their grip.' This senior official also added that the sanctions against Russia will not achieve their intended goals: 'Russia will never act under duress.' He quoted Russian Prime Minister Dmitry Medvedev, who stated that the country's economy will become 'stronger' as a result of the sanctions, which is usually a common occurrence in Russian history. However, many economists and experts argue that Western sanctions since 2014 have had profound effects on Russia's economic situation; initially, they led Russia to face serious economic recession, and subsequently, they caused the recovery and rebuilding of the economic situation to proceed slowly and weakly since the end of last year. Last week, US President Donald Trump signed a new congressional bill for sanctions against Iran, Russia, and North Korea, making it law. This law imposes sanctions on companies involved in Russia's offshore oil extraction projects and its oil and gas pipeline facilities. Additionally, companies cooperating with Russian military and security entities will also face sanctions. The Russian Prime Minister described this legislation as a 'full-scale war.' On the other hand, Jean-Claude Juncker, President of the European Commission, has stated that if US sanctions cause losses to European companies in energy transactions with Russia, the EU is prepared to respond appropriately within a few days. Sanctions against Russia have been linked to issues such as the annexation of Crimea and allegations of interference in US elections. Russia has denied allegations of interference in the US elections. Sergey Ryabkov stated that the US Congress has approved new sanctions because they do not significantly affect US citizens or companies. This official from the Russian diplomatic service pointed to the low trade balance between the two sides compared to trade with the EU or China. For example, in 2013, trade between Russia and the US was $38 billion, which decreased to $20 billion after the sanctions. In 2014, the trade balance between Russia and the EU was $3.6 trillion, and between Russia and China, it was nearly $690 billion.