- Russia, facing US sanctions, urges Middle Eastern nations to drop the US dollar in oil trades, potentially ending its global dominance.
- Saudi Arabia’s decision on BRICS membership is pivotal, reflecting broader economic ambitions beyond oil.
President Vladimir Putin is urging Middle Eastern nations to stop using the US dollar for oil trades as a defense against US sanctions imposed as a result of Russia’s contentious incursion into Ukraine in February 2022.
🇷🇺 Russia's President Putin says if oil producers in the Middle East stop using the US dollar, it will be the end of the dollar. pic.twitter.com/FoRQalPCg6
— BRICS (@BRICSinfo) March 17, 2024
In the Face of Sanctions, Russia Seeks Solidarity
Putin is rallying wealthy oil-producing nations, such as BRICS allies Egypt and the United Arab Emirates, to challenge US financial hegemony amid international sanctions.
According to Putin, the US dollar’s hegemony in the oil market might be undermined by refusing to use it, and if large oil exporters from the Middle East support this fiscal disobedience, it could signal “the end of the dollar.”
The de-dollarization movement in Russia is strongly related to the BRICS alliance as well as more oil-producing countries as of late.
What’s interesting is, this strategic growth represents a determined attempt to weaken the dollar’s influence in international trade by supporting local currencies and reducing reliance on them. To explore more details about this development, you can watch the following YouTube video:
The Crucial Role of Saudi Arabia
Saudi Arabia has a vital position in this narrative, as its oil production capacity makes it a decisive element in the movement toward de-dollarization.
The Kingdom’s position on BRICS membership is still up in the air; its larger objectives for economic diversification may discourage it from participating, even if its participation could be crucial to the initiative’s success.
As ETHNews previously reported, Russia enacted a law on digital assets to facilitate trade without reliance on the dollar in line with the BRICS initiative to challenge the US dollar’s hegemony.