Russia To Cut Dependence On U.S. Dollar, Payment Systems

Russia will speed up work on reducing its dependence on U.S. payment systems and the dollar as a settling currency in response to U.S. sanctions, Deputy Foreign Minister Sergei Ryabkov said on Monday.

Quoted by Reuters, Ryabkov said that "we will of course intensify work related to import substitution, reduction of dependence on U.S. payment systems, on the dollar as a settling currency and so on. It is becoming a vital need." The reason for that is that "the US is using its dominating role in the monetary and financial system to impose pressure on foreign business, including Russian companies.”

As a reminder, three years ago the MasterCard payment system stopped serving clients of seven Russian banks without warning after Washington imposed its first set of sanctions on Moscow in 2014. In response, the Russian government ordered the creation of a national payment system. With the support of the country's banking system, the Mir charge card was introduced in 2015, although there is no information on what its adoption rate has been in the following years.

As we discussed previously, as part of the latest set of Russian sanctions the US has imposed new restrictions on the Russian banking and energy sectors: the ban targets already sanctioned Russian firms, limiting the financing period for them to 14 and 60 days. Additionally, the new law will punish individuals for investing more than $5 million a year or $1 million at a time in Russian energy export pipeline projects or providing such enterprises with services, technology or information support, a provision that has drawn strong condemnation from Washington's European allies.

US energy companies criticized the tightening of already existing sanctions as damaging for business. At the same time, the European Union expressed concerns the new penalties may undermine the bloc’s energy security. European Commission head Jean-Claude Juncker pledged to prepare an “adequate” response and “within days” if the measure hurt the interests of European companies. So far Europe has to elaborate on what, if any, retaliation to the sanctions it will unveil.


BritBob Mon, 08/07/2017 - 14:28 Permalink

Russia tells Britain give back the Falklands before telling US what to do.RUSSIA has told Britain it should "clean its conscience" and give the Falkland Islands before it criticises them over their involvement in Ukraine. Moscow's ambassador to the UN, Vitaly Churkin made the shocking remarks when responding to his British counterpart Matthew Rycroft at a UN security council meeting in New York. (Daily Express 4 Feb 2017) Funny thing to say when Argentina has never legally owned the Falklands. So how can they 'be returned' ?Falklands- Never Belonged to Argentina: The bad guys ?

Omen IV BaBaBouy Mon, 08/07/2017 - 15:08 Permalink

Thr Russian government should sponsor a lecture series on how a country can be crippled by using and depending on US Currency and Systems.they should review the list of major imports and exports for each country as well as critical items which have no large volume and show how to develop  fail safe systems around potential US mischief and abuse of these system utilities.The work arounds are all possible it is just about getting organizedThis whole game is now going to happen over and over there is no solution long term - even if you comply with one demand they will invent another pretext for another sanction

In reply to by BaBaBouy

Rubicon727 Jim in MN Mon, 08/07/2017 - 17:05 Permalink

Pepe has been chronicling the rise of China's Eurasian Exchange for several months. Meantime, we NEVER hear how this new Silk Road will eventually defeat the US's hegemonic currency & military.It is especially ironic that China has greatly benefited all these years from the greedy, criminal US corporations who purposely outsourced ALL of our manufacturing, and now hi-tech highly skilled professionals. CHEAP labor at the expense of millions of Americans - all thanks to Apple, Microsoft, and ALL the rest who simply wanted MORE PERSONAL PROFITS FOR THEMSELVES AND THEIR COHORT.NOW you see the "why" of the vitriolic hatred against Russia, North Korea, China and others. The D.C. fanatic neo-cons in the US military, the State Department and many other D.C./US institutions are going beserk. As well they should.The empire is dying, out of pure greed, power and prestige.A country that loses the supremacy of its currency means drastic cuts in their military. With the military shrunk down to size, and the FED unable to maintain its criminal policies, ALL Of them stand to lose - BIG TIME!!!! 

In reply to by Jim in MN

Give Me Some Truth BaBaBouy Mon, 08/07/2017 - 16:08 Permalink

It will come down to gold and silver vs. paper (computer digits). The Entire U.S. Establishment is betting on Fiat Paper. And they are doing all they can - fair and unfair - to stack the deck in favor of paper. Russia and China no doubt get this. If they want to be subservient to the U.S. they will allow the dollar to remain dominant. If not, they won't.

In reply to by BaBaBouy

Butifldrm BaBaBouy Mon, 08/07/2017 - 19:09 Permalink

Russia and China have developed new monetary tranfer systems to advert international payments out side the dollar. They both are just waiting for the perfect opportunity to give the ole Petro Dollar the boot.… It's just a matter of time before the US Bully is punished and the King Dollar looses its throne!

In reply to by BaBaBouy

SybilDefense BaBaBouy Mon, 08/07/2017 - 19:45 Permalink

The shanghai shock that never came will soon become evident as we force Russia into a corner with zero proof of wrongdoing.  We impose Obamas old sanctions with this hope that maybe now someone on the left will be supportive of trumps efforts.  Never happen.  This same article posted on go read what the Russians are saying about our incapacitated country.  Its time to drain this swamp or get out of the country

In reply to by BaBaBouy

Justin Case BaBaBouy Mon, 08/07/2017 - 19:59 Permalink

"not providing such enterprises with services, technology or information support"I can't think of a moar motivational tool to create R&D jobs and industries in their own country. Wonder if the Mericans will ever develop their own rocket engines rather than buying Russia's? Merica should be soluted for it's motivational skills for other countries economic growth.China has the fastest supercomputer, a monolithic system with 10.65 million compute cores built entirely with Chinese microprocessors. This follows a U.S. government decision last year to deny China access to Intel's fastest microprocessors.They are thankful for merica's motivation. Couldn't do it with them.

In reply to by BaBaBouy

Putrid_Scum Looney Mon, 08/07/2017 - 14:47 Permalink

Bob. Your brain is obsessing about nothing.Because the System Result is extinction.Buy bitcoin, buy Gold, buy the entire world, go ahead Americans.Because it won't make any diffeence unless the System is changed. And you lack the courage and coordination to demand that change. So find your inner peace and prepare for The

In reply to by Looney

Buckaroo Banzai Looney Mon, 08/07/2017 - 14:50 Permalink

The China bubble, which is about to pop, is already putting a giant bid under BitCoin as rich and/or crooked Chinese look for a way to get money out of the system in a way that is beyond government reach. Russia withdrawing from the USD settlements system is going to be another giant boost for cryptocurrencies. There is a lot of cryptocurrency innovation happening in Russia right now, and the Chinese are major players in BitCoin mining, so these economies already have a real stake in these technologies, completely aside from ongoing geo-political and geo-financial shenanigans.This is aside from all the ridiculous bullshit that is happening is western bond and equity markets, and the exponential increase in system debt. This pig is about to roll over, and traditional forms of financial refuge (real estate, collectibles, and precious metals) are either ridiculously overvalued and non-portable (RE and collectibles) or are ruthlessly manipulated (PMs).We are on the brink of major historical events and cryptocurrencies will remake the financial landscape in the wake of the upcoming political and financial turmoil that is about to break loose. 

In reply to by Looney

Buckaroo Banzai BandGap Mon, 08/07/2017 - 15:10 Permalink

Listen to Pippa Malmgren's interview on MacroVoices a few weeks ago. It's her opinion that governments will try to co-opt cryptocurrency technology as a way to reset the financial system. Considering that the people in charge are evil, the goal is a Mark of the Beast/universal control system, which she basically admits. She is a CFR member which means her opinions have influence.Cryptocurrencies are inherently moral in that the blockchain is open for everyone to see, and strict mathematical rules bind the creation of currency, which severely curtails the possibilities for traditional central bank manipulation. That is why a draconian Mark of the Beast solution would be demanded by these evil people-- if the coercion cannot be hidden, then it must be in the open, and their evil intentions will be made plain.The cryptocurrency sword is razor sharp, but it can cut two ways. We are about to drive them out into the open. This will represent our greatest opportunity to defeat the (((globalist))) system once and for all. The stakes could not be higher. 

In reply to by BandGap

Justin Case cossack55 Mon, 08/07/2017 - 20:10 Permalink

They have to tax everything you buy and sell. Also capital gains tax. Every transaction taxed and known where, when,what, and how much. If they don't like you they can just lock up the account or confiscate it, like the civil asset forfeiture or civil judicial forfeiture now, just so much easier electronically and the cops can't pocket any.The banksters are getting moist already, just thinkin bout it. 

In reply to by cossack55

Implied Violins Justin Case Mon, 08/07/2017 - 21:48 Permalink

Yup. Brandon Smith just wrote an article on that, pointing out the flaws in bitcoin and the blockchain tech. Every coin you spend can be traced. The reason there is so much crypto news lately is because the international bankers WANT this shit. It offers TOTAL CONTROL of the plebes...and you better believe they will have ways to circumvent their own purchases.

In reply to by Justin Case

LawsofPhysics BandGap Mon, 08/07/2017 - 15:11 Permalink

^^^THIS.  No politician, with maybe the exception of Ron and Rand Paul, has been talking about this.  China, Brazil, India, Iran and Russia have been putting things in place to move away from the petrodollar for some time now.  Unfortunately, their politicians/leadership seems to be even more corrupt than ours, for now..."Full Faith and Credit"... there is also the additional problem of all that dollar-denominated DEBT floating around as well as all those FRNs... tick tock...

In reply to by BandGap

Give Me Some Truth LawsofPhysics Mon, 08/07/2017 - 16:16 Permalink

Si, Russia and China clearly know the game revolves around the U.S. dollar being the reserve currency and the masses of the world rejecting (or accepting) gold and silver as "real money." Apparently they have been acquring many many tons of the real stuff. But you make a good point, they are probably just as corrupt as our government is and also want to have the option of gaming the system with money created out of thin air.I don't think any nation's government or central bank still endorses gold. They have all lost their souls.This said, if China or Russia or any nation wants to finally stop America from doing all the things America does they WILL get serious about ending all of this bogus "faith" in this Monopoly money.

In reply to by LawsofPhysics

bonin006 curbjob Mon, 08/07/2017 - 15:56 Permalink

"brezhnev took afghanistan"That is the story I heard from the MSN, and believed for years, but more recently I have read stories that it was a CIA operation to create a Vietnam for the USSR. Specifically, the CIA funded terrorists to attack Afghanistan, the Afghan government called on the USSR for help, and the CIA fed the terrorists with enough sophisticated weapons to eventually drive the USSR out. This turned Afghanistan into a hell hole, but the psychopaths were overjoyed that they had given the USSR its own Vietnam.  

In reply to by curbjob

veritas semper… bonin006 Mon, 08/07/2017 - 17:41 Permalink

There was apro-Soviet government in Kabul.Look at Afghanistan pictures during that time.women going to schools,not wearing Burkas.Healthcare for everybody,education for everybody. Look at the damn picture.After you do this ,look at the pictures of Afghanistan after Jewmerica financed the mujahedins ,and OBL leading them(he was from SA,a wealty family) to get rid of that government and brought "freedom and demonocracy" to them.The Afghan gov called the USSR to hepl fight the "freedom fighters" financed by See Eye Ayy.(the re are pictures/videos of Zbigniew Brzezinski with OBL all over the net.And newspaper calling them freedom fighters.They were invited to WH(see Reagan pictures).They morfed into AlQaeda,then ISIS.Now we call AlQaeda moderate terrorists(full See Eye Ayy circle)

In reply to by bonin006

AurorusBorealus BritBob Mon, 08/07/2017 - 16:26 Permalink

Bob.  Give it a rest.  The MALVINAS issue has nothing to do with who owns what or what the 500 fishermen living on the MALVINAS want.  It has to do with the exploitation of the gas and oil resources near those islands.  England is using a flag, planted in the ground 350 years ago, to take possession of gas and oil resources 2000 miles away from its coast.  If 165 Argentines in a wooden frigate planted an Argentina flag on an abandoned atoll of the coast of Sumatra, does this give Argentina the rights to all the oil and gas off the coast of Sumatra?  If so, Argentina should do so tomorrow.That is what you are claiming... you are claiming ownership of oil and gas that sits just off coast of Argentina.  Why are you surprised that Argentina objects?  Give it a rest.

In reply to by BritBob