Russia's divestment from the Dollar is moving at an astonishing pace. https://t.co/3WYC47o2oT
— Tom Fowdy (@Tom_Fowdy) June 7, 2021
- Russia Mulls Ordering State Firms To Switch To Euro, “Preparing” For Possible Disconnect From SWIFT
by Tyler Durden, https://www.zerohedge.com/
On Monday a flurry of bombshell statements came out of Russia after at the end of last week Putin blasted the United States for using the dollar as a tool for waging “economic & political war” in an address before the St. Petersburg International Economic Forum. Amid a tightening US and EU sanctions noose, most recently surrounding the Nord Stream 2 pipeline, Putin also suggested a more “acceptable” scenario of European nations paying for Russian gas in euros, amid what alarmingly appears a broader de-dollarization effort which includes Russia’s sovereign wealth fund deciding to dump all of its dollars and dollar-denominated assets in favor of those denominated in euros, yuan – or further buying precious metals like gold. “The euro is completely acceptable for us in terms of gas payments. This can be done, of course, and probably should be done,” Putin calmly said Thursday.
And now Russia’s Finance Minister has announced preparations for stimulus to move FX liquidity into euros while specifying it’s mulling ordering state companies to switch to euros, according to RIA news. Additionally, Moscow said it’s responding to calls for more sanctions by “preparing” for possible disconnect from international payment systems, namely SWIFT.
However, a mere couple hours later the Finance Ministry walked back some of the most provocative earlier official statements: “Russia will rely on economic means to encourage companies to shift from dollar to euro and doesn’t plan any restrictions on use of U.S. currency,” a follow-up report noted.