As the United States keeps antagonizing Russia, Putin has plans to work with China instead.
Due to increased sanctions from the U.S. and other countries, Russian companies are turning to China and India to sell products and goods.
Oil and fertilizer are two big products Russia is selling to China and India “after US-led broad economic sanctions against Russia,” according to a manager for the Russia Asia Union of Industrialists and Entrepreneurs. “Most of our member companies are using the yuan for cross-border trade settlements instead of U.S. dollars or other currencies, because yuan settlement is much faster and more practical,” he said.
Regarding the Russia-China trading relationship, yuan transactions are becoming increasingly popular and more Russian companies “are looking to open accounts at branches of Chinese banks in Moscow.”
“Some Russian traders receive payment in yuan, and then use the payment to buy Chinese goods,” the Global Times newspaper stated.
Russia is forgoing to use the U.S. dollar, making its lessening value even more obsolete. Trading wood, various material, electronics and mechanical products is not done using the dollar with Russia anymore; they now use the yuan.
With conflict exploding between Russia and Ukraine, the U.S. decided it would be the perfect time to interfere in international matters — instead of focusing on its own dismal situation. This led to the U.S. severing ties with Russia through financial sanctions.
To make things even more interesting, Russia and China are banding together to create a new global reserve currency that could potentially rival the U.S. dollar value. Brazil, India, and South America would also be included in this.
“The matter of creating the international reserve currency based on the basket of currencies of our countries is under review,” Putin told the BRICS Business Forum, according to a TASS, a Russian news agency. “We are ready to openly work with all fair partners.”
The dollar has been hailed as the world’s reserve currency, but under the Biden administration, that could easily change. The yuan is becoming increasingly popular, and other countries are starting to lean away from the dollar. These are signs that America’s superpower status is slipping, with no guarantee of being regained, under the leadership of President Joe Biden.