Translation. Region: Russian Federal
Source: Rosneft – Rosneft – An important disclaimer is at the bottom of this article.
The use of the dollar as a sanctions weapon undermines its position and creates preconditions for the use of alternative instruments, such as gold, cryptocurrencies, as well as national currencies of other countries, said Rosneft CEO Igor Sechin, speaking at a keynote address at the Energy Panel at the XXVIII St. Petersburg International Economic Forum
In his report, Sechin noted that the causes and development of serious cataclysms and problems do not arise overnight, but are formed over a certain period of time, and then one push is enough: “By 1971, the United States had a government budget deficit, but instead of tightening their belts, they tore up the Bretton Woods agreement and practically declared default. As a result of the refusal to back the dollar with gold, the United States was able to endlessly, as it seemed to them, finance growing budget and trade deficits through unsecured emission and debt buildup. The global financial system, based on the dollar monopoly, needs additional stability.”
The head of Rosneft recalled the research of the Belgian-American economist Robert Triffin, who in the eponymous dilemma formulated by him in 1960 proved that the functioning of the dollar as an international reserve currency creates a permanent deficit in the US balance of payments. “Its increase, in turn, leads to an excess of dollars in the world, thus accumulating contradictions in the global financial system. And the use of the dollar as a sanction weapon, which is contrary to common sense, undermines its position and creates preconditions for the use of alternative instruments, such as gold, cryptocurrencies, as well as national currencies of other countries,” said Igor Sechin.
In his opinion, the credit rating downgrade and the uncertainty of the forecasts for the US budget stability are leading to the fact that US Treasury bonds are gradually losing their status as a “safe haven”. Their place is taken by gold, the price of which, as a rule, rises on the eve of global crises.”
The head of Rosneft noted that, according to the World Gold Council, in the last three years alone, the share of gold in global gold and foreign exchange reserves has grown by 7% and exceeded 20%, and according to the latest survey by the World Gold Council, 95% of global central banks plan to increase their gold reserves over the next 12 months.
“A clear indication of the significant increase in demand for gold is the rise in its relative value. Today, 1 ounce of gold can buy about 4 times more oil, 9 times more steel, and 35 times more wheat than in 1950. And the governor of Florida signed a law recognizing gold and silver as legal tender in the state,” he said.
Sechin also drew attention to the growth in the use of cryptocurrencies. “The volume of cryptocurrency trading has grown tenfold – to $18.5 trillion over the past five years. And the state of New York is considering a bill allowing government agencies to accept payments in cryptocurrency,” said Igor Sechin.
In addition, he noted the growth in the use of national currencies – the yuan, dirham and Indian rupee in international trade. “The share of the yuan in international settlements has already exceeded 6%, catching up with the euro,” Sechin said.
Speaking about the current situation with the undermining of confidence in the dollar due to sanctions, Igor Sechin quoted the first lines from Homer’s Odyssey, written in the 8th century BC:
“Muse, tell me about that experienced man who has wandered for a long time since he destroyed sacred Troy, visited many people’s cities and saw their customs, suffered much in spirit on the seas, worrying about saving his life and returning his faithful comrades to their homeland. Yet, no matter how hard he tried, he did not save his comrades. By their own sacrilege they destroyed themselves….”
Department of Information and Advertising of PJSC NK Rosneft June 21, 2025
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