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Russia To Create Own National Payment System In "Bid To Reduce Dependence On The West"

Tyler Durden's picture




 

The more the West attempts to "isolate" Russia and pushes it away from its "core values" and of course the US Dollar, the more Russia will seek the safety of a non-dollar based system. We have previously described how Putin has been scrambling to enmesh Russia in tight bilateral commodity-based trade with both China and India, and now it is Russia's turn to announce it would seek its own "national payment settlement system" following last week's surprising and unmandated service halts by both Visa and MasterCard, which as Vladimir Putin said earlier today, will be a "bid to reduce economic dependence on the West."

Putin observed, cited by AFP, that Russia is aggressively looking to trim its dependence on the west for payment settlement: "In countries such as Japan and China these systems work, and work very well," Putin told lawmakers in televised remarks.

"Initially, they started out solely as national systems limited to their own markets, their own territory, their own population but they are becoming more popular right now... Why should we not do it? We should definitely do it and we will do it," he said, noting that Russia's Central Bank and the government have been looking into the matter.

And as everybody knows, while the biggest trump card over the West Russia has are its energy exports, one can retort that Western leverage over Russia is in the form of SWIFT, or the "Society for Worldwide Interbank Financial Telecommunication", aka the umbrella framework for all interbank transactions taking place in a petrodollar world. If and when the day comes when Russia and/or China and/or India and/or any other BRICs and other nations who are tired of the hegemony of the fading US superpower, decide to create their own version of Swift, all bets on the reserve currency for the past century are off.

In the meantime, we will settle with Russia making its own electronic payment settlement system. More from AFP:

Last week the United States hit more than 20 Russian officials, including some of Putin's closest allies, with sanctions over Moscow's takeover of Ukraine's peninsula of Crimea. A lender described as a "crony bank" for the Russian elites, Bank Rossiya, was also blacklisted.

 

As a result of punitive measures, several banks last week saw their customers barred from using Visa (NYSE: V - news) and MasterCard credit cards prompting talk among officials and lawmakers that Russia should create its own operational network.

 

"It's a great shame that some companies have taken a decision on certain restrictions," Putin said. "I think it will simply lead to a loss of certain segments of the market for them, and a rather profitable market at that."

Unlike Obama, whose repeated iteration of "costs" to Russia should it annex Crimea, which it did, is now the laughing stock around the world, Putin's threats are not to be trifled with. To wit: "We should protect our interests and we will do it."

But not yet:

Finance Minister Anton Siluanov said on Wednesday that the government had no plans so far to ditch Visa and MasterCard. "But at the same time we are beginning to pay more attention to the creation of our own payment settlement system."

 

US President Barack Obama has threatened to target the broader Russian economy if Moscow moves into east Ukraine after its takeover of Crimea.

 

This week, Washington and its partners in the G8 club of leading industrialised countries cancelled an upcoming summit in the Black Sea resort of Sochi in a bid to punish Russia further.

 

Putin has shrugged off the sanctions, insisting Moscow will conduct an independent foreign policy and would not take orders from the West.

 

Ratings agencies Standard and Poor's and Fitch last week revised Russia's outlook to negative from stable, citing the direct and anticipated impact from the sanctions and the country's increasing isolation. Some Russia officials dismissed the revision, claiming the move was politically motivated.

 

Economy Minister Alexei Ulyukayev warned earlier Thursday that the country risked growth of just 0.6 percent this year with capital flight expected to reach $100 billion.

The problem is that should Russia enter into a recession, it will simply drag the economies of all those other countries who are reliant on bilateral trade with it. Such as Germany. Then again, this could be precisely the annual scapegoat the broken global Keynesian model will need to explain why - for yet another year - the global economy will fail to generate a self-sustaining growth pattern despite trillions in central bank liquidity injections, and $16 trillion in hot money emanating from China.

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Thu, 03/27/2014 - 11:16 | 4598590 fightthepower
fightthepower's picture

Fuck you Rothschilds!

Thu, 03/27/2014 - 11:20 | 4598607 quintago
Thu, 03/27/2014 - 11:25 | 4598636 LawsofPhysics
LawsofPhysics's picture

Great link to information that no MSM will undoubtably show...

Thu, 03/27/2014 - 11:27 | 4598654 Herd Redirectio...
Herd Redirection Committee's picture

"Oh, hey, look over there, its a starving bear!  Lets corner it and see what happens..."

The West has forced Russia into a siege mentality.

Thu, 03/27/2014 - 11:29 | 4598663 Pladizow
Pladizow's picture

Thanks for coming out America - good game!

Thu, 03/27/2014 - 11:37 | 4598712 SafelyGraze
SafelyGraze's picture

give me control of the settlement/clearing of a nation's credits, and I care not who issues its currency

Thu, 03/27/2014 - 11:52 | 4598812 Thought Processor
Thought Processor's picture

 

 

This is a big move.  Bypassing the SWIFT system is a big FU to the NWO sponsored Central Bank System.

 

If Russia can now link this to a China / India trading system then they will have taken a chunk of power from the NWO / BIS network.

 

Question is- is it real or is it a negotiating move on the part of Russia?

 

Regardless, expect the war drums to begin beating harder in the western MSM's now.

 

 

Thu, 03/27/2014 - 11:57 | 4598839 Latina Lover
Latina Lover's picture

False flag in the USA, targeting Russia for war, counting down 3.2.1...

Thu, 03/27/2014 - 11:59 | 4598856 SWRichmond
SWRichmond's picture

Cue shirtless pic of Putin carrying rifle and Russian credit card in 3...2...1...

"What's in YOUR wallet?"

Thu, 03/27/2014 - 12:01 | 4598866 Stackers
Stackers's picture

The Russian Express card - never leave home without it

Thu, 03/27/2014 - 12:05 | 4598889 SWRichmond
SWRichmond's picture

In Russia, card charge YOU

Thu, 03/27/2014 - 12:19 | 4598954 Max Hunter
Max Hunter's picture

The inchworm moves slowly, but moves nonetheless.

Thu, 03/27/2014 - 13:06 | 4599104 dontgoforit
dontgoforit's picture

Thu, 03/27/2014 - 13:07 | 4599175 Anusocracy
Anusocracy's picture

I, for one, am going to buy more Russian products.

Starting with vodka.

Thu, 03/27/2014 - 13:18 | 4599205 tmosley
tmosley's picture

You can tell how much he actually cares about his people or if he prefers personal power by whether or not he adopts a cryptocurrency based payment system.

Meet the new boss, same as the old boss.

Thu, 03/27/2014 - 13:23 | 4599227 ParkAveFlasher
ParkAveFlasher's picture

Every step towards self-empowerment naturally is a step away from those who would not empower you.

Thu, 03/27/2014 - 12:57 | 4599123 BLOTTO
BLOTTO's picture

Rothschild, Rockefeller, The Royal Family and the rest of the illuminati royal occult bloodlines here on this earth - are the problem. They are what is causing our lives misery.

.

Until we can get that corrected - nothing changes.

Thu, 03/27/2014 - 15:24 | 4599848 sessinpo
sessinpo's picture

 BLOTTO    Rothschild, Rockefeller, The Royal Family and the rest of the illuminati royal occult bloodlines here on this earth - are the problem. They are what is causing our lives misery.

.Until we can get that corrected - nothing changes.

------

I don't get it.

Let's say the Rothschild, Rockefeller, The Royal Family and the rest of the illuminati royal occut bloodlines were all shot dead today, there would just be someone else to replace them.

It's like capturingt or killing a Mexican drug lord. So what? Then someone else becomes the drug lord of that gang.

The elite have been around forever. Through wars and depressions. They always come out on top because they have the resources. It is the population that suffers and pays.


Thu, 03/27/2014 - 12:09 | 4598912 McMolotov
McMolotov's picture

I really hope you're wrong, but you're probably not. People mistakenly think Russia is the one backed into a corner; in actuality, it's the United States.

"Desperate times call for desperate measures" is usually the rationale behind humanity's most stupid and unforgivable events.

Thu, 03/27/2014 - 12:20 | 4598960 Max Hunter
Max Hunter's picture

Absolutely. It's obvious to some of us who is moving around the chessboard frantically to protect the king and who is blocking these frantic moves with pawns..

Thu, 03/27/2014 - 12:02 | 4598871 Overfed
Overfed's picture

After casting off the shackles of the West and the Rothschilds, et. al., without even firing a shot, Putin will be remembered by history as Vlad the Great, after Peter and Catherine. And likely even more beloved and reknowned by Russians.

Thu, 03/27/2014 - 13:20 | 4599212 pot_and_kettle
pot_and_kettle's picture

May Gd guide his steps

 

( that isn't a cue for those who believe otherwise to engage in or provoke rancor - live and let live )  :-)

Thu, 03/27/2014 - 13:34 | 4599277 kashey
kashey's picture

Not yet. I am Russian, I have been strongly anti-Putin since 2006 when he used chechen attack on Beslan school to eliminate right of Russians to elect regional governors (now he co-appoints them with regional parliaments). And since then my anti-putin sentiment grew every year. But regarding Crimea I support him greatly, as more than 80% of Russians do. I would even be against sending him in court if he is toppled somehow - as recognition of his contribution in Russian history, which is now not only negative.
But to be called Great he must reunite with Russia ethnic Russia lands in South and East Ukraine, Northern Kazakhstan. and Russian lands of Estonia and Latvia could make him the Greatest.

Thu, 03/27/2014 - 14:54 | 4599675 Overfed
Overfed's picture

The thing in my mind that would make him great is this; if when his work was done, he just stepped down from power, ala George Washington. Were he to do that, he would be regarded extremely favorably by future generations, Russian and non-Russian alike. We all have front row seats to some real history in the making here, whatever the outcome.

Thu, 03/27/2014 - 15:03 | 4599739 pot_and_kettle
pot_and_kettle's picture

RE: But to be called Great he must reunite with Russia ethnic Russia lands in South and East Ukraine, Northern Kazakhstan. and Russian lands of Estonia and Latvia could make him the Greatest.

 

Target date 2017... and I'll take the under.

Thu, 03/27/2014 - 17:08 | 4600255 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

anyone who knows anything about Russia knows that it is ALWAYS about them having a warm water port. The Ukraine Parliament had a hard time recently granting a renewal of the Crimea naval yard lease to Russia, fisticuffs on the floor. Russia would have seen that and then said Shit we need to REALLY secure Crimea. Otherwise they have to get their navy through the Helgoland Bight (Denmark) or else around from friggin Vladivostok. And notice how much they are spending to beef up Vladivostok too

Thu, 03/27/2014 - 12:56 | 4599117 Grom Hellscream
Grom Hellscream's picture

They had started this one earlier, but will be accelerating roll-out for local transactions, since Visa and Mastercard are now unreliable in country.

If this is made available outside Russia, I want one. I'm sure they will just laugh when some US three letter agency tries to serve an administrative warrant for my purchase data.

Thu, 03/27/2014 - 13:20 | 4599219 tmosley
tmosley's picture

Now if only you and the rest of ZH would realize that Bitcoin also bypasses SWIFT.

Thu, 03/27/2014 - 17:11 | 4600267 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Oh, look, I wonder if this guy knows ANYTHING at all about SWIFT...I mean he was only the CEO for fourteen years:

http://www.finextra.com/news/fullstory.aspx?newsitemid=25898&topic=whole...

 

Thu, 03/27/2014 - 14:49 | 4599655 trader1
trader1's picture

setting up a payment system to rival SWIFT's would take at least 3 years.

 

Fri, 03/28/2014 - 08:44 | 4602035 Global Observer
Global Observer's picture

Making a payment system bypassing the SWIFT isn't a big move by itself. Nor will be shutting the US$ out of the trade within the BRICS bloc (which I suspect is already the case). What will be a big move is creating a currency to replace the US$ completely in international trade. Timothy Geithner has acknowledged that China has discussed with him a supra-sovereign currency that should act as the world's reserve currency instead of the US$.

The BRICS bank with its own currency is a done deal as is the death of the US$. The US government far from being against it, is actively pushing for it. The US economy will be consigned to the dustbin, but the elite will get even richer.

Thu, 03/27/2014 - 12:30 | 4599006 Kirk2NCC1701
Kirk2NCC1701's picture

@SafelyGraze: "give me control of the settlement/clearing of a nation's credits, and I care not who issues its currency" <-- quoting/paraphrasing A.M. Rothschild.

Looks like ICELand said "Forget yew!" (pun).  They opted for own crypto-currency:

http://rt.com/news/auroracoins-iceland-national-cryptocurrency-257/

Wish more countries would follow:  Crypto-currency (CC) for trade, and PM for Store of Value.  Then they can all say "Forget yew!" to BIS, IMF, WB and Fed.

Thu, 03/27/2014 - 19:38 | 4600752 Rafferty
Rafferty's picture

Our real rulers know that and would fight tooth and nail to avoid it.  And it's their finger that's on the button.

Thu, 03/27/2014 - 11:38 | 4598718 krispkritter
krispkritter's picture

Commicard...what's in your walletsky Comrade?

And finally, when they call 'Peggy', it will be a local call...

Thu, 03/27/2014 - 11:40 | 4598730 Global Hunter
Global Hunter's picture

#1 in the world at unifying people around the world in their opposition to US policy.

Thu, 03/27/2014 - 12:37 | 4599032 Lewshine
Lewshine's picture

"Russia To Create Own National Payment System"

...So this is a bad thing? The US has been creating its own Stock, Bond, Currency and Commodities market for the last 20 years - And look how grand things are here!!

 

Thu, 03/27/2014 - 11:36 | 4598677 ParkAveFlasher
ParkAveFlasher's picture

The West is more fragmented than Russia is seiged.  Putin is not extending now, or lashing out, he is backfilling his perimeter, he is solidifying his positions and realizing his profits.  The lightening speed of these developments means that it's all a ball rolling downhill at this point.  No one seemed to notice that ball being rolled into position.

Thu, 03/27/2014 - 11:37 | 4598710 McMolotov
McMolotov's picture

As another poster said yesterday, "Russia is not Iraq." The US can't go to the first play in its playbook and invade/occupy Russia. We've screwed the pooch big time, and whether or not this was all intentional is anyone's guess, but it's pretty much a moot point now.

America is in the process of being cut off at the knees.

Thu, 03/27/2014 - 11:40 | 4598727 krispkritter
krispkritter's picture

The one's Obama's always on...?

Thu, 03/27/2014 - 11:41 | 4598732 Herd Redirectio...
Herd Redirection Committee's picture

Hey, a lot of times being under siege was preferable to being the side laying siege...

Backs against the wall, us against 'the world'...  Its a tremendous unifying and motivating force.

 

Thu, 03/27/2014 - 11:51 | 4598799 ParkAveFlasher
ParkAveFlasher's picture

I agree that the West has sued to "back Putin into a corner".  The West hasn't realized that Russia is just one big mf'n corner.  One big corner with lots of water, timber, energy resource, access to eastern markets, access to western markets, minerals, cheap labor, and so on, and so on, and so on, ...

Meanwhile, TBTF here in the USA is acting like the two pasty shmoes in the Jackass movie on the golf course, as Knoxville gleefully fires his air horn at them.

Thu, 03/27/2014 - 12:34 | 4599020 Herd Redirectio...
Herd Redirection Committee's picture

The only thing they are missing is a warm water port, and possibly a larger buffer from NATO's missile 'defences'.  Oh wait...

Thu, 03/27/2014 - 12:16 | 4598941 MarsInScorpio
MarsInScorpio's picture

Every post positive for Putin or the Russians, and negative for Obama, gets at least one down arrow,

 

Definitely a troll in the house . . .

-30-

Thu, 03/27/2014 - 13:24 | 4599230 pot_and_kettle
pot_and_kettle's picture

always some dung in the woodpile ;-)

 

( no - that doesn't mean it's me! )

Thu, 03/27/2014 - 14:27 | 4599502 SDShack
SDShack's picture

"We have a turd in the punchbowl..."

Thu, 03/27/2014 - 16:24 | 4600117 kurt
kurt's picture

Baby Ruth in the Pool

Thu, 03/27/2014 - 11:47 | 4598777 sushi
sushi's picture

More importantly Putin is the leading edge of a growing global awareness of the risks of being made subject to an uncontrolled global hegemon.

If the readers of ZH are aware of flase flag events, the FUCK THE EU thinking, the meddling in the internal affairs of other states, the attempt at control via various form of trade sanction, the despotic IMF and World Bank, the advantage of being free to mint petrodollars as if they were gold, then one must accept that there are many in the G77 equally aware of these issues. These G77 nations realize that the current global system works against them and serves to favour the interests of the G1 above all others.

Why lend any support to a state that will act to depose you if it wishes or launch a Hellfire through your window? The actions of the US are reminiscent of the actions of the COMINTERN. Todays US foreign policy actions will be seen in retrospect as the day the US commenced seppuku with an old wooden spoon. The outcome will be drawn out and painful but inevitable.

Thu, 03/27/2014 - 12:09 | 4598913 NotApplicable
NotApplicable's picture

A lot of people felt the same way on Sept. 10th, 2001.

Yet it was all forgotten the VERY NEXT DAY.

Logic is one tool, emotionalism is another.

Guess which one is more powerful.

Thu, 03/27/2014 - 19:48 | 4600800 Rafferty
Rafferty's picture

Emotion is more powerful, true.  But logic has a way of catching up with emotion.  All the emotion in the world won't roll back what the USA and the West in general has been doing to itself for decades.

Thu, 03/27/2014 - 12:04 | 4598884 jopa
jopa's picture

If the west Ukraine collapse all Europe (east and west) cope the dirt.

Both side must work together (and are, backstage).

The boasting from a part and another is just a try not to lose face.

If Ukraine falls Europe and Russia lose face and a lot more, not mentionning ukrainians.

http://russeurope.hypotheses.org/2150

Do NOT follow this link or you will be banned from the site!