Russia working on new economic system as dollar-based mechanism proves 'unreliable, false, dangerous'

Russia is working on a new system of economic relations with other countries as the US dollar-based mechanism proves to be "unreliable, false, and dangerous," Kremlin spokesman Dmitry Peskov said on Saturday.

Speaking at a press briefing in Moscow, Peskov said there is no need to bother about the dollar system weakening since the US itself is undermining it through its actions.

"Russia is building a new system of economic connections because the previous system turned out to be unreliable, false, and dangerous. Russia is looking for an opportunity to develop alternatives," he said.

Russia has consistently criticized the US for using its dominance in the global financial system to impose financial sanctions, such as freezing accounts, prohibiting payments, banning the sale of the dollar, which serves as an international payment currency, and influencing fund allocation through international financial institutions.

The US controls the international system for transmitting information and making payments known as SWIFT, and is home to two of the world's largest financial institutions, the World Bank and the International Monetary Fund.

According to President Vladimir Putin, Russia has lived under US sanctions for almost all of its modern history. However, when Moscow launched its "special military operation" in Ukraine in Feb. 2022, the US and its Western allies imposed several sanction packages and Russia found itself in a difficult situation, almost cut off from the global financial system.

In such circumstances, Moscow began looking for alternatives that would allow it to ensure international payments and trade with other countries, which Washington viewed as a "challenge."