According to recent Russian press reports the country’s Ministry of Finance is getting ready to give the green-light to a plan which will radically increase the role of the Russian ruble in export operations while reducing the share of dollar-denominated transactions.
A subsequent meeting was chaired by Deputy Finance Minister Alexey Moiseev who later told the Rossia 24 channel that”the amount of ruble-denominated contracts will be increased”, adding that none of the polled experts and bank representatives found any problems with the government’s plan to increase the share of ruble payments.
Since the Nixon Shock 1971 which were a series of economic measures taken by United States President Richard Nixon including unilaterally canceling the direct convertibility of the United States dollar to gold virtually all oil and natural gas around the world has been bought and sold for U.S. dollars. This has been a colossal boost for the U.S. economy. Over the past years , there have been rumblings by nations such as Russia and China about the need to change this status quo to a new system, but no nation has really had a reason to upset the status quo. However, that has now changed. The struggle over Ukraine has caused Russia to completely reevaluate the financial relationship that it has with the United States. If it starts trading a lot of oil and natural gas for currencies other than the U.S. dollar, that will be a massive blow for the petrodollar, and it could end up dramatically changing the global economic landscape.