Russia To Cut Dependence On US Dollar And Payment Systems

Author: us-russia
Comments: 0
Russia To Cut Dependence On US Dollar And Payment Systems
Published 8-08-2017, 07:00
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.

 

eurasiareview.com

Comments: 0
Experts' Panel
Save the Planet Expert`s Pannel
Presently a growing number of people, including well known and...
Save the Planet Expert`s Pannel
Top
popular in the journal
Denial of US visa to Russian MP...

Denial of US visa to Russian MP...

The Russian Foreign Ministry emphasized that the US "brazenly abuses" the privilege of hosting the UN Headquarters
Top U.S., Russian Generals Meet in...

Top U.S., Russian Generals Meet in...

The U.S. and Russian military chiefs of staff met Wednesday in Helsinki for the first time in 20 months, amid Washington's hopes for support to continue surveillance of ...
Ukraine on my mind

Ukraine on my mind

During his recent visit to Washington, Ukrainian President Volodymyr Zelenskyy met with President Biden and a few members of Congress.
Why Europe Sees US As an...

Why Europe Sees US As an...

There's something big that seems to go unnoted in American media. It is that increasingly the US is being seen as a significant threat around the world. Here in neutral ...
RUSSIAN FEDERATION SITREP 14...

RUSSIAN FEDERATION SITREP 14...

PUTIN. Putin celebrated his 69th birthday on Thursday and Levada published a poll. (Googlish) He remains popular: about two thirds like him. Which is only ...