Western Sanctions On Russia Has Destroyed The Credibility Of Dollar And Euro

Putin has claimed that the credibility of dollar and euro has been destroyed as a result of sanctions imposed by the West On Russia.

Western Sanctions On Russia Has Destroyed The Credibility Of Dollar And Euro

On Wednesday, Russian President Vladimir Putin warned that Western sanctions against his country have harmed public’s trust in the two major Western currencies. In reaction to Russia’s growing military offensive in Ukraine, many US allies have banded together to impose sweeping sanctions on Moscow.

Putin claimed that the sanctions demonstrated that selling Russian goods in the US and EU while receiving payment in dollars or euros “makes no sense anymore.” He stated that the ruble would be used to sell Russian natural gas to countries that Moscow regards to be “hostile.”

“During the last few weeks, as you know, several Western countries adopted unlawful decisions to freeze Russian assets,” Putin said during a government meeting held via video link. “The West has de facto destroyed the credibility of its currencies.”

The United States and the EU have practically defaulted on their obligations before Russia. Some have suspected this, but now everyone in the world knows that obligations in the [US] dollars and euros can be left unfulfilled.

Due to sanctions, Russia’s Finance Minister Anton Siluanov stated this month that the country was unable to access roughly $300 billion in reserves.

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Following a seven-year impasse over Kiev’s refusal to fulfil the provisions of the Minsk agreements, and Russia’s subsequent recognition of the Donbass republics in Donetsk and Lugansk, Moscow launched an attack on Ukraine in late February. The agreements negotiated by Germany and France were intended to normalize the status of certain regions inside the Ukrainian state.

Russia has now demanded that Ukraine declare itself a neutral country that would never join the NATO military alliance led by the United States. Kiev believes the Russian invasion was unprovoked and refutes suggestions that it planned to seize the two republics by force.

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