Russia's Secret Memo Proposes Return to Dollar System in Pitch to Trump Administration
According to an internal Russian document reviewed by Bloomberg News, the Kremlin has outlined proposals that could see Russia embrace the U.S. dollar once again as part of a comprehensive economic partnership with the Trump administration. This high-level memo, drafted earlier this year, details seven key areas where Russian and United States economic interests could potentially converge following a negotiated settlement to end the war in Ukraine.
Strategic Economic Reversal
The proposal represents what would be a stunning reversal of longstanding Kremlin policy. For years, finding alternatives to the dollar rather than restoring links to the U.S.-led financial system has been a central goal for Russia as President Vladimir Putin sought to deepen economic ties with China and reduce vulnerability to Western sanctions.
The memo argues that returning to the dollar settlement system would allow Russia to expand its foreign exchange market and significantly reduce volatility in its financial transactions. This move would potentially create a dramatic shake-up in global finance and mark a significant departure from Russia's recent efforts to develop trade in alternative currencies with China, India, and other nations.
Comprehensive Partnership Framework
The document, which circulated among senior Russian officials, provides previously unreported insight into Kremlin thinking at a critical moment when potential economic agreements between the U.S. and Russia are being negotiated as a key component of any future peace accord for Ukraine. The proposal envisions the two countries working together to champion fossil fuels over greener alternatives while pursuing joint investments in natural gas, offshore oil, and critical raw materials.
Additionally, the memo suggests that such a partnership could generate substantial windfalls for U.S. companies operating in these sectors. The U.S. has already proposed gradually lifting sanctions on Russia as part of any peace agreement, which would be a necessary first step for the country to begin transacting in dollars again. However, what the Kremlin memo contemplates would extend far beyond mere sanction relief.
Geopolitical Implications
Western government officials familiar with the document's contents expressed skepticism about whether Putin would ultimately pursue a deal that runs counter to Beijing's interests. Long before the full-scale invasion of Ukraine in 2022, Putin had been working systematically to lessen Russia's dependence on the U.S. currency as part of a broader push by rival economic powers to challenge American financial hegemony.
The rationale for those efforts became particularly evident when the United States and its allies used their control over dollar transactions to impose sweeping sanctions on broad segments of the Russian economy following the outbreak of war. Since that time, Moscow has intensified efforts to develop trade in alternative currencies and payment systems.
Strategic Calculations and Uncertainties
On one level, returning to dollar settlement would mean submitting to Washington's financial dominance once again and reversing years of effort to make the Russian economy less vulnerable to U.S. pressure. At the same time, such a move would potentially hand the Trump administration a major strategic victory in its apparent objective of weakening the relationship between Moscow and Beijing.
Putin's spokesman Dmitry Peskov did not respond to requests for comment regarding the document. It remains unclear whether Russia has formally pitched any of the points contained in the memo to U.S. officials. The proposal provides a rare window into Kremlin tactics and economic thinking as negotiations continue regarding potential agreements between the two nations.
