June 6, 2018 Special Dispatch No. 7510

Russian Finance Minister Siluanov: If The EU Refuses To Support The U.S. Economic Pressure On Russia – Moscow Will Help EU Start De-Dollarization

June 6, 2018
Russia | Special Dispatch No. 7510

An article published by the Russian news agency, headlined "Macron And Merkel Were Asked To Create A 'Petro-Euro' – They Can't Do It Without Moscow," stresses that during the May 24-26, 2018 St. Petersburg International Forum,[1] Russian, First Deputy Prime Minister and Finance Minister Anton Siluanov, openly offered Russia's European partners a kind of barter along the lines of "the EU refuses to support the American economic pressure on Russia, and Russia helps the EU start de-dollarization."

The article suggests that if Europe does not want be the "vassal" of the U.S. and chooses "freedom," then it will have to challenge the dollar, and will find it impossible to refuse Russia's offer.

The following are excerpts from the article:[2]


The St. Petersburg International Forum Proved That Russia Is One Of The Poles Of The New, Multipolar World Order

"Judging by the Western mass media, the most important thing in the economic forum in St. Petersburg was that political and economic global game changers came to Russia: Emmanuel Macron, Shinzo Abe, Christine Lagarde. For a few days, St. Petersburg also became a center of attraction for those who want to feel which way the wind of world politics and economy blows, as well as for those who count on making big money from cooperation with Russia or work in Russia. Somehow, it became evident that Russia's supposed isolation from the world community is nothing but a long-expired myth of dull-witted Western propagandists, who can no longer explain to their readers why Patrick Pouyanné, chairman of the French oil giant Total, Faustin-Archange Touadéra, president of the Central African Republic, and writer Nassim Nicholas Taleb are all rushing to St. Petersburg at the same time.

"From the perspective of demonstrating that Russia is one of the poles of the new, multipolar world order, and that it one cannot do without it when solving any even slightly important geopolitical or geoeconomic issue, the forum has already undoubtedly achieved its goal.

"At the same time, it should be pointed out that a few rather interesting proposals have already been expressed during the meeting. They have been vastly underestimated by the Western mass media, but their implementation may have a strong impact on the future balance of power in the world.

"For example, Russian First Deputy Prime Minister and Finance Minister Anton Siluanov, almost openly offered Russia's European partners a kind of barter trade along the lines of 'The EU refuses to support the American economic pressure on Russia, and Russia helps the EU start de-dollarization.' This is the right way to interpret the Russian official's phrase about Moscow's readiness to use euros instead of dollars for financial settlements with the European Union.

"'Therefore, if our European partners do not support the U.S. economic policy towards Russia, we definitely see a way out in using the European currency and European infrastructure organizations for financial settlements, for payments for goods and services, which often fall under various kinds of restrictions today,' noted Siluanov. He also pointed out that Russia is already trying to use national currencies in financial settlements with other countries. Apparently, he meant the CIS countries, Iran, and, of course, China.

"If one calls things by their proper names, the European Union has been offered quite a feasible plan to create a 'petro-euro,' which can easily edge out the petrodollar in the global market or, at least, in the eastern hemisphere. The geopolitical consequences of this development cannot be overestimated.

"Have you ever wondered why the American system of financial dominance is based on the petrodollar? The U.S. does not produce anything that the world would have to buy for dollars, thereby creating demand for this currency.

"In modern world, one could maybe name American processors (and only by a long stretch of the imagination) as such a 'super-necessary' product. But the volume of trade in processors is not that great, and many third world countries do not need them. However, oil is needed by everyone, and, by making the entire world pay for oil (not produced in the U.S., by the way!) in dollars, the Americans have managed to secure constant demand for U.S. currency, and created a situation in which refusing to work with the dollar system is not an inconvenience but an economic disaster."

Should Europe Decide It Is Strong Enough To Choose Freedom, It Will Find It Impossible To Refuse Russia's Offer

"In fact, it is not American knowhow, but a modernized scheme used by the British Empire: Back in its prime, it created a situation in which copper and other metals necessary for the development of industry could be bought almost exclusively for British pounds and almost exclusively on the London Exchange.

"To challenge the dollar system, its opponents must possess several elements at once – elements that are rather difficult to find in one state. On the one hand, they need a powerful and very well-developed financial system, which would be open to external players and trusted by other countries.

"On the other hand, they need control over certain resources, the consumption of which is not an option but a vital necessity for all those participating in global trade. Moreover, they need a sufficiently deep and rich national market that uses a specific currency.

"And a cherry on top (but a necessary one): One must have a well-developed army, able not only to defend its own territory but to effectively project its military power to other regions on the planet in order to expand and protect the zone in which the specific rival to the dollar is used. If this military shield does not exist, any competing currency zone will be easily shrunk with the help of American aircraft carrier groups.

"China has a relatively deep domestic market, but its financial system does not inspire great trust in the world, and even Chinese officials themselves acknowledge (and try to solve) its problems with being open to the outer world. As for controlling resources and the ability and readiness to project its military muscle, the situation in China is far from ideal.

"The European Union, in contrast, has a well-developed financial system, which enjoys considerable trust in the world, and it has a deep and rich European market. But its control over resources and its ability to project military power are a disaster, and the U.S. is trying to maintain this disastrous state of affairs, blocking deliveries of Iranian oil to the EU and trying to make the EU switch to American LNG (liquefied natural gas).

"Russia, unfortunately, cannot boast of a deep and financially reliable market that could rival the markets of the EU, China or the U.S. in appeal. We cannot – and will not be able to in the near future – boast of a developed financial system with worldwide reach and recognition. But we have key resources, as well as the ability and readiness to effectively use military force to defend our national interests. It is easy to see that synergetic cooperation along the line of Russia-EU or Russia-China, or even in the Russia-China-EU triangle, practically offers itself. And it is natural for the mere possibility of such cooperation to provoke a severe allergic reaction on the other side of the Atlantic.

"Now, the European Union, or rather, the European political and economic elite, must determine (primarily for its own benefit) the answer to the question asked by French Economy Minister Bruno Le Maire: 'Do we want to be vassals who obey decisions taken by the U.S. while clinging to the hem of their trousers?' If Europe decides it is strong enough to choose freedom, it will find it impossible to refuse Russia's offer."

Share this Report: