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Putin says dump the dollar

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Russian President Vladimir Putin © Alexei Druzhinin / RIA Novosti

Russian President Vladimir Putin © Alexei Druzhinin / RIA Novosti

Russian President Vladimir Putin has drafted a bill that aims to eliminate the US dollar and the euro from trade between CIS countries.

This means the creation of a single financial market between Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and other countries of the former Soviet Union.

“This would help expand the use of national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity of domestic currency markets”, said a statement from Kremlin.

The bill would also help to facilitate trade in the region and help to achieve macro-economic stability.
Within the framework of the Eurasian Economic Union (EEU) the countries have also discussed the possibility of switching to national currencies. According to the agreement between Russia, Belarus, Armenia and Kazakhstan, an obligatory transition to settlements in the national currencies (Russian ruble, Belarusian ruble, dram and tenge respectively) must occur in 2025-2030.

Today, some 50 percent of turnover in the EEU is in dollars and euro, which increases the dependence of the union on countries issuing those currencies.

Outside the CIS and EEU, Russia and China have been trying to curtail the dollar’s dominance as well.
In August, China’s central bank put the Russian ruble into circulation in Suifenhe City, Heilongjiang Province, launching a pilot two-currency (ruble and yuan) program. The ruble was introduced in place of the US dollar.
In 2014, the Russian Central Bank and the People’s Bank of China signed a three-year currency swap agreement, worth 150 billion yuan (around $23.5 billion), thus boosting financial cooperation between the two countries.

It’s now up to the State Duma, Russia’s lower house of parliament, to ratify the president’s bill to become law.

READ MORE: China approves usage of ruble instead of US dollar for border city

RT News

Current Events Putin Russia Uncategorized

Putin Ratification of BRICS New Bank Deal

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BRICS Nations

BRICS Nations

Russian President Vladimir Putin has signed a law ratifying the deal establishing the BRICS New Development Bank (NDB), according to a document published on Monday on Russia’s official website for legal information.

The BRICS New Development Bank (NDB) was set up to challenge two major Western-led giants – the World Bank and the International Monetary Fund. NDB’s key role will be to serve as a pool of currency for infrastructure projects within a group of five countries with major emerging national economies – Russia, Brazil, India, China and South Africa.

According to the Russian Finance Ministry, the New Development Bank is expected to start functioning fully by the end of the year, with the headquarters slated for opening in Shanghai. The chairmanship, with a term of five years, will rotate among the members.

It’s hoped the new bank will stamp the growing influence of the BRICS. The NDB is expected to become one of the world’s key institutions, with a stated capital of $100 billion. Each of the five-member countries is expected to allocate an equal share of the $50 billion startup capital that will be expanded to $100 billion. Russia has agreed to provide $2 billion from the federal budget for the bank over the next seven years.

The bank, which will be able to start lending in 2016, will be open to other countries that are members of the United Nations. The BRICS share is never to decline below 55 percent, however. The money will be used to finance development projects in the emerging economies.

India will serve as the first five-year rotating president, and the first Chairman of the Board of Directors will be Brazilian.

The bank was first proposed in 2012. The signing of the agreement to create the joint development bank by the heads of the five countries took place at the BRICS summit in Fortaleza, Brazil, in June 2014.

 

 

 

 

 

 

 

Putin Russia Uncategorized

How Putin is Building Alliances

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Putin Man Of Action

Putin Man Of Action

 Putin visited Hungary  in an attempt to show the world he still has a friend in the EU despite East-West tension over Ukraine.

The Russian leader held talks with Viktor Orban, the Hungarian prime minister, who has been accused of becoming a “little Putin”, harassing civil liberty groups, clamping down on the press and entrenching his grip on power.

As many as 2,000 protesters took part in an anti-Russia march hours before Mr Putin touched down.

“The pestering of civic groups, corruption and the fattening of oligarchs show that we are getting ever closer to the Russian model and farther from the European one,” said Gabor Vago, one of the organizers of Monday night’s protest.

North Korea

The Kremlin has been nurturing ties with Pyongyang for years as a way of thumbing its nose at the West, but the effort accelerated last year as the Ukraine crisis took hold. In January, the Kremlin confirmed that Kim Jong Un, North Korea’s eccentric leader, will attend the annual Victory Day celebrations on Red Square on May 9 marking the Soviet triumph over the Nazis during the Second World War. Russia has also paid off Pyongyang debt by 90%.

Syria

Russia is the main international backer of Bashir al-Assad’s Syria and Western politicians have accused Vladimr Putin of supplying his regime

with arms . Earlier this month, Mr Putin renewed his criticism of US airstrikes targeting Islamic State of Iraq and the Levant in Syria, saying they should not be carried out without Damascus’s permission.

Greece

After the Syriza party came to power in Greece in January, it quickly emerged that members had been in correspondence with Alexander Dugin, a Russian ultra-nationalist admired in some Kremlin circles who has called for a genocide of Ukrainians.Alexis Tsipras, Greece’s new prime minister, has spoken against further sanctions on Russia over its backing for separatists in Ukraine, to Moscow’s delight.

If it is not Russia making business with rest of the world, it’s the Chinese than going in and making deals with other County’s!