Russia » Economics
Author`s name Dmitry Sudakov

Putin calls new sanctions 'counterproductive'. Russia to bid farewell to US dollar

Russian President Vladimir Putin considers new US sanctions counterproductive and meaningless actions.

"Regarding the sanctions, these actions are counterproductive and meaningless, especially against a country like Russia," Putin said at a press conference after talks with the President of Finland Sauli Niinisto.

Putin also said that he was still hopeful that the United States would some day realize how futile this policy is.

On August 21 it became known that the US imposed sanctions against a number of Russian citizens and companies because of their alleged cyber-activity and cooperation with the DPRK.

Russia may switch to national currencies in settlements with other countries in order to minimize the effect of US sanctions, Russian Minister of Industry and Trade, Denis Manturov said. According to him, Moscow is preparing a whole package of retaliatory measures in response to Washington's economic policy. The minister also said that the restrictions have made Russia less dependent on the international financial system.

Financial sanctions against Russia may affect Russia's exports to third countries. Therefore, Russia may abjure the US dollar in transactions with other countries, Denis Manturov added.

In turn, the head of Russia's Federal Service for Military-Technical Cooperation, Dmitry Shugaev, said that the US currency was unreliable.

"It is an open secret that the dollar is an unreliable currency today, to say the least, especially within the framework of settlements in the field of military-technical cooperation. That said, we already find ways to overcome negative consequences today," Shugaev said.

Russia's Finance Minister Anton Siluanov expressed a similar opinion earlier. According to him, financial restrictions "will backfire on the Americans."

It is worthy of note that Turkey also expresses a wish to abandon the US dollar and switch to national currencies. For Turkey, such cooperation can be possible with Russia, China, Iran and Ukraine. "If European countries also want to get rid of the shackles of the dollar, Ankara is ready to switch to national currency settlements with them too," Turkish President Recep Tayyip Erdogan said.