Addressing the Russian Parliament following his inauguration, Vladimir Putin observed the necessity of increasing Russia’s economic sovereignty and independence from the petrodollar system, stressing that the West is boosting this process through its economic bullying in the form of sanctions.
As The Duran's Frank Sellers notes, generally speaking, any country that wants to buy oil needs to buy dollars first, with which to accomplish the commodity purchase, which is a major aspect of the dollar’s global hegemony in international trade.
The US, in attempting to maintain this, has been resorting to international bullying in its sanctions and financial practices, which, continuing down this path, is only ensuring America’s eventual irrelevance on the global economical stage.
We have seen how this is happening around the world, with China’s introduction of the Petroyuan, Venezuela’s petro, and with bilateral trade deals and banks being erected so as to side step both the dollar and American economic sanctions. Putin cites Russia’s gold and foreign currency reserves, and his intention to do something about Russia’s dependence on the American dollar backed oil system.
As Sputnik News reports, Putin's latest announcement came less than two months after China launched yuan-denominated oil futures on the Shanghai International Energy Exchange, thus challenging the dominance of the Brent and West Texas Intermediate (WTI) benchmarks. Incidentally, in 2017 China emerged as the largest oil buyer, surpassing the United States. According to the US Energy Information Administration (EIA), in 2017 China imported 8.4 million barrels of crude per day, half a million more than the US.