Ksenia Kirillova
Pro-Kremlin analysts persist in formulating strategies for continued conflict with the West despite Moscow signaling the potential suspension of Russia’s war against Ukraine (see EDM, February 10). One such strategy, consistent with previous years, is to undermine the dominance of the U.S. dollar. Since 2022, Moscow has openly hoped for the creation of a single currency by the BRICS bloc. [1] A single BRICS currency would enable member states to avoid sanctions and replace “the toxic and inconvenient” dollar in international markets (VM.ru, July 3, 2023). This has placed other BRICS states in an awkward position, prompting, for example, South African Finance Minister Enoch Godongwana to officially declare in August 2023 that the question of establishing a single BRICS currency had never been discussed, even during informal meetings (Forbes.ru, August 24, 2023). In December 2024, the notion of another currency replacing the dollar in the global financial system angered then-U.S. President-elect Donald Trump, who threatened to impose a 100 percent tariff on products from BRICS countries if they continue to implement their plans for de-dollarization (X/@realDonaldTrump, December 1, 2024).
Writers at the “Valdai Discussion Club,” an analytical center close to the Kremlin, have attempted to convince Russia’s BRICS partners to create a new payment system and reserve currency to avoid the risks of the “weaponization of the existing financial system” (Valdai Club, February 3). Shamil Yenikeyev, a professor of international relations at Russia’s National Research University Higher School of Economics, advises potential partners to carefully choose their words and use special terminology to lower the risk of backlash from the United States. For example, rather than calling for an “alternative payment system,” Yenikeyev recommended advocating for a “supplementary payment system.” Likewise, Yenikeyev suggested employing “financial diversification” or “risk management” in the place of “de-dollarization” (Valdai Club, February 3).
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