Kamal Ghorui
Russia might soon return to the US dollar as the Kremlin is weighing the possibility under a set of economic partnership with the Trump government. According to an internal Russian document cited by Bloomberg, The memo, written this year and circulated among senior officials, identifies seven areas where Moscow believes its interests could align with those of the Trump administration if an agreement is reached to end the war in Ukraine. It includes plans for joint work in energy, industry and raw materials, and outlines potential advantages for American companies.The most eye-catching point is the return to dollar settlements, something that would reverse years of policy under Vladimir Putin to reduce dependence on the US currency and build closer financial links with China.Washington has already suggested sanctions could be eased gradually as part of a peace deal, a step that would be needed before Russia could use the dollar again. The Kremlin document, however, goes further, describing deeper economic engagement.
Proposed areas of cooperation
According to the memo, possible joint work could include:
- Long-term aviation agreements to modernise Russia’s aircraft fleet, with potential US involvement in manufacturing.
- Collaborating on oil and liquefied natural gas projects, including offshore and difficult reserves, which would help American investors in recovering previous losses.
- Preferential conditions for US firms returning to Russia’s consumer market;
- Cooperation in nuclear energy, including projects linked to artificial intelligence
- Resuming dollar settlements, possibly including energy trade
- Partnerships on supplies of lithium, copper, nickel and platinum.
- Promoting fossil fuels instead of low-emission approaches seen as favouring Europe and China.
Moscow, for years, has tried to move away from the dollar. After the invasion of Ukraine in 2022, the United States and its allies used their influence over dollar payments to impose sweeping sanctions. Russia then expanded trade in other currencies and systems, for instance with China and India.Going back would undo much of that effort and again place Russia within Washington’s financial reach. It could, however, serve US goals if the intention is to weaken ties between Moscow and Beijing, Bloomberg reported.Some parts of the memo seem to match priorities often linked to Donald Trump. The idea that American companies should be repaid for earlier losses mirrors a demand he once made of Venezuela. Resistance to climate-focused technologies may also appeal to him.Western officials who have seen the document said certain proposals appear designed to widen differences between the United States and Ukraine’s European allies. Others, they said, promise big rewards in the future that may never materialise. They declined to be named because the memo is private.They added that moving away from China would be difficult, as Beijing has become an essential supplier of components and materials for Russia since sanctions cut off other options.The document argues that rejoining the dollar system would help Russia expand its foreign-exchange market and reduce swings in its balance of payments. For the US, it says, the step would strengthen the greenback’s global role and might reduce trade imbalances by narrowing energy-price gaps between China and America.Earlier this month, Volodymyr Zelenskyy said Russia and the United States were discussing large bilateral economic deals alongside peace talks with Kyiv.Details of what he called the “Dmitriev Package” were gathered by Ukrainian intelligence, Zelenskiy said, referring to Kremlin negotiator Kirill Dmitriev, who also heads Russia’s sovereign wealth fund.
