The Kremlin has set out proposals that could see Russia embrace the dollar again as part of a wide-ranging economic partnership with the Trump administration, according to an internal Russian document reviewed by Bloomberg.
The high-level memo, which was drafted this year, details seven points where, in the Kremlin’s view, Russian and US economic interests could converge following a deal to end the war in Ukraine. It sees the two countries working together to champion fossil fuels over greener alternatives as well as joint investments in natural gas, offshore oil and critical raw materials plus windfalls for US companies.
The proposal, which was circulated among senior Russian officials, provides previously unreported insight into Kremlin thinking and tactics at a moment when potential economic agreements between the US and Russia are being negotiated as a key plank of any future peace accord for Ukraine.
At the heart of the offer is Russia’s return to the dollar settlement system, a move which would mean a stunning reversal of Kremlin policy and, potentially, a dramatic shake up for global finance.
The US has already proposed gradually lifting sanctions on Russia as part of any peace agreement, a necessary first step for the country to start transacting in dollars again. But what the Kremlin memo considers would go far further.
Until now, finding alternatives to the dollar, rather than restoring links to the US-led system, has been a key goal for Russia as President Vladimir Putin sought to deepen his relationship with China. For that reason, western government officials familiar with the contents of the document said they think it is extremely unlikely that Putin would ultimately pursue a deal that runs counter to Beijing’s interests.
Putin’s spokesman Dmitry Peskov didn’t respond to an email seeking comment. It is unclear whether Russia has pitched any of the points contained in the document to the US.
Long before the full-scale invasion of Ukraine in 2022, Putin had been working to lessen Russia’s dependence on the US currency as part of a push by rival economic powers to challenge US financial hegemony. The rationale for those efforts was made obvious when the US and its allies used their control over dollar transactions to impose sanctions on broad swathes of the Russian economy after the start of the war. Since then, Moscow has tried to develop trade in alternative currencies and systems, particularly with China and several other countries such as India.
So on one level, returning to dollar settlement would mean submitting to Washington’s financial dominance all over again and reverse efforts to make the Russian economy less vulnerable to US pressure. At the same time, it would hand the Trump administration a major victory in its apparent objective of weakening the relationship between Moscow and Beijing.
Other details of the plan also appear designed to play into ambitions Trump has set out in other areas. The idea that US companies should be compensated for past losses in Russia echoes a demand that the US president made of Venezuela, while pushing back against low-carbon technologies favored by Europe and China is likely to appeal to a president known for his long tirades against wind turbines.
The western officials familiar with the memo said that some of the proposals appear to be crafted specifically to deepen the divisions between the US and Ukraine’s European allies. Others are distant promises with potentially big numbers attached that might entice the US president into doing a deal and then never materialize, they said, asking not to be identified when discussing a private document.
They also noted that it is unlikely the Kremlin would want to pivot away from China because Beijing has become a crucial supplier of components and raw materials for the Russian war machine since western sanctions shut off other sources.
The memo, however, argues that returning to the dollar system would allow Russia to expand its foreign exchange market and reduce volatility in its balance of payments. For the US, the document says, such a move would further strengthen the greenback’s position as the world’s reserve currency and could reduce global trade imbalances by leveling energy costs between China and the US.