The Kremlin has prepared a document that suggests a possible return to the dollar, as part of a broad economic cooperation with the administration, focusing on common interests with the , after a possible agreement to end the war in Ukraine.
The memo describes partnerships in fossil fuels, natural gas, offshore oil and critical raw materials, with profits for US companies.
The proposal represents a major shift in Kremlin policy, as until now Russia has sought alternative currencies and a closer relationship with China to reduce its reliance on the dollar. Western officials consider it unlikely that Putin will go ahead with a deal that would conflict with Beijing’s interests. It is not known whether Russia has already presented these proposals to the US.
The seven points of the agreement
- Long-term aviation contracts for the modernization of the Russian aircraft fleet, as well as the possible participation of American companies in Russian production.
- Joint ventures in oil and LNG, including offshore and hard-to-exploit reserves, taking into account past US investments and allowing US companies to recoup past losses.
- Preferential conditions for the return of American companies to the Russian consumer market.
- Cooperation in the field of nuclear energy, including IT projects.
- Return of Russia to the dollar settlement system, possibly also for energy transactions.
- Cooperation in raw materials such as lithium, copper, nickel and platinum.
- Joint efforts to promote fossil fuels versus green and low-emission solutions favoring China and Europe.
Before invading Ukraine in 2022, he sought to reduce Russia’s dependence on the dollar by strengthening trade ties with China and India.
A return to the dollar, as suggested by an internal Russian memo (“Dmitriev Package”), would reverse these efforts, strengthening US economic dominance and providing political and economic benefits to the Trump administration.
Some proposals appear to be aimed at separating the US from its European allies, while Russia will likely not fully distance itself from China due to its strategic reliance on raw materials and components. The plan also promises a more stable foreign exchange market for Russia and strengthening the dollar as the world’s reserve currency.
Ukrainian President Volodymyr Zelensky told a group of reporters earlier this month that Russia and the US were discussing massive bilateral economic deals alongside peace talks with Kiev.
