Putin Criticizes US Dollar Sanctions, Highlights BRICS Economic Dominance

Russian President Vladimir Putin has criticized U.S. sanctions restricting Russia’s access to the U.S. dollar

Russian President Vladimir Putin has criticized U.S. sanctions, highlighting their role in driving global economies away from the U.S. dollar and leading to a gradual decline in its use for international trade and reserves.

During a BRICS media meeting on Friday, Putin noted that countries are reconsidering the use of the dollar due to its restriction by the U.S. for political reasons. He stated:

“All the countries of the world are now thinking of whether it is worth to use the dollar if the US limits the dollar use as a universal international settlement unit due to political considerations.”

Putin further described a gradual decline in the dollar's usage, both in payments and reserves, highlighting that even traditional U.S. allies are reducing their dollar reserves. He also pointed to China, another country affected by sanctions.

“And what is happening with China — one sanction after another also. And this is not related to politics, this is related to the growth of the Chinese economy and to the attempt to impede this growth using various sanctions, politically motivated ones,” Putin noted.

According to the Russian president, these restrictions have prompted Russia to shift 95% of its trading operations with foreign partners to national currencies. He emphasized that this change was forced by external sanctions.

“As regards finances, we did not give up the dollar as the universal currency; we were denied of using it,” Putin clarified.

“But now 95% of the whole Russian foreign trade is being made with our partners in national currencies. They did it by their own hands,” he added.

Putin also dismissed Western forecasts that Russia’s economy would collapse as a result of abandoning the dollar, stating that it continues to develop on a new foundation.

At the BRICS Business Forum held the same day in Moscow, Putin discussed the growing global economic influence of the BRICS nations, now outpacing the G7 in terms of global GDP share.

“For example, let’s take 1992—[the share of] the Group of Seven is 45.5%, and in the same year the BRICS countries [account for] 16.7% of global GDP. And now? In 2023, our association [accounts for] 37.4%, and the [share of] Group of Seven is 29.3%,” Putin stated.

He highlighted the increasing role of BRICS as the main engine of global economic growth, predicting that this trend will only continue.

“The gap is widening, and it will widen, this is inevitable,” Putin added.

According to Putin, BRICS countries have contributed over 40% of global GDP growth in recent decades, with an average economic growth rate projected at 4% this year, compared to only 1.7% for G7 countries.

“This is higher than both the rates in the G7 countries—there it is only 1.7%—and the global rates. The global rates will be 3.2%,” Putin explained.

He also noted that BRICS nations dominate key markets like energy, metals, and food, which are essential for sustainable global development.

Meanwhile, the Kremlin’s press service revealed on Monday that Russia and Iran have shifted to using national currencies for over 96% of their mutual payments.

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