Russia is reportedly seeking to re-enter the US dollar trading system, marking a potential reversal of its strong advocacy for BRICS de-dollarization efforts. According to a new report, Moscow is working on a trade deal to seek approval from the Trump administration. This development suggests Russia’s push for local currency trade was driven by sanctions pressure rather than ideology, and its return to the dollar could significantly slow the bloc’s broader de-dollarization agenda.
The BRICS alliance has promoted trade in local currencies as an alternative to the US dollar for years. Russia became a leading supporter after Western sanctions limited its access to the global financial system following its 2022 invasion of Ukraine.
However, a new report indicates Russia is looking to get back to the US dollar system and is working on a trade deal. If successful, this would represent a complete U-turn from its BRICS position and supports the narrative that its de-dollarization push was sanctions-driven.
Russia regaining dollar access would reshape BRICS plans to reduce dependency on the greenback. The country has recently conducted nearly 90% of its trade with China and India in local currencies like the ruble, yuan, rupee, and dirham.
A Russian re-entry would slow the bloc’s de-dollarization efforts, potentially leaving supportive countries at a disadvantage. Nonetheless, BRICS is larger than Russia, and China is expected to continue pushing the yuan for cross-border transactions.
India is also pursuing the internationalization of the rupee through special Vostro accounts. Brazil and South Africa will continue pursuing their own national economic interests.
Therefore, even if Russia returns to dollar trading, the BRICS de-dollarization agenda will not end. Analysts suggest the initiative would, however, slow down and could move at a snail’s pace.
