Russia Proposes Return to US Dollar System in Economic Pitch to Trump
A leaked internal document from the Kremlin suggests that Russia is considering a return to using the US dollar. This move would be a major shift in Russian policy and could significantly change global finance.
The memo, drafted this year and reviewed by Bloomberg, outlines seven areas where Russia and the US could work together economically if the war in Ukraine ends. The proposal includes a partnership with the Trump administration to prioritize fossil fuels over green energy, alongside joint investments in natural gas, oil, and raw materials.
A Major Shift in Strategy
This high-level proposal has been shared among senior Russian officials. It offers a rare look into the Kremlin’s strategy as the US and Russia discuss economic deals as part of a potential peace plan for Ukraine.
At the center of this offer is Russia’s return to the US dollar settlement system. This would be a total reversal of current Kremlin policy. While the US has already suggested lifting some sanctions as part of a peace deal—which would allow Russia to use dollars again—this memo goes much further.
Until now, President Vladimir Putin has focused on moving away from the dollar to build closer ties with China. Because of this, some Western officials doubt Putin would actually follow through on a deal that might hurt his relationship with Beijing.
Key Areas of Proposed Cooperation
The Kremlin memo identifies several areas where Russian and US economic interests could meet:
- Aviation: Long-term contracts to modernize Russia’s planes and potential US involvement in Russian manufacturing.
- Energy: Joint ventures in oil and liquefied natural gas (LNG), allowing US firms to recover past financial losses.
- Consumer Markets: Special conditions for US companies to return to the Russian market.
- Nuclear Power & AI: Cooperation on nuclear energy projects, including those linked to Artificial Intelligence.
- Currency: Returning to the US dollar system, specifically for energy trades.
- Raw Materials: Shared work on mining lithium, copper, nickel, and platinum.
- Climate Policy: A joint push for fossil fuels as an alternative to “green” policies favored by Europe and China.
The Impact on Global Power
For years, Putin has tried to reduce Russia’s dependence on the US dollar to challenge American financial power. This became even more important after the US used its control over the dollar to impose sanctions following the invasion of Ukraine. Since then, Moscow has relied heavily on trade with China and India using alternative currencies.
Returning to the dollar system would mean Russia once again accepts Washington’s financial influence. However, it would also give the Trump administration a significant win by potentially weakening the bond between Russia and China.
Appealing to Trump’s Goals
Many details in the plan seem designed to match Donald Trump’s specific goals. For example, the idea of compensating US companies for past losses and the push against wind turbines and low-carbon technology align with his previous statements.
However, Western officials warn that some of these proposals may be intended to create a divide between the US and its European allies. They also suggest that some of the “big money” promises might never actually happen. Furthermore, they note that Russia still relies heavily on China for the parts and materials needed for its military.
Why the Kremlin Might Benefit
Despite the risks, the memo argues that returning to the dollar would stabilize Russia’s economy and reduce market volatility. For the US, the document suggests the move would strengthen the dollar’s status as the world’s main reserve currency and help balance global trade costs.
Ukrainian President Volodymyr Zelenskiy confirmed recently that Russia and the US have been discussing large economic deals alongside peace talks. According to Zelenskiy, Ukrainian intelligence gathered this information on the “Dmitriev Package,” named after Kremlin negotiator Kirill Dmitriev.
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