Russia is considering a return to using the US dollar in international settlements as part of a proposed wide-ranging economic partnership with the United States under President Donald Trump’s administration.
This stems from an internal Kremlin memo reviewed and reported by Bloomberg. The document outlines several areas of potential US-Russia economic alignment, potentially tied to a broader deal that could include ending or resolving aspects of the Ukraine conflict.
Russia’s proposed return to the dollar settlement system, which could extend to energy transactions; a major reversal of Moscow’s multi-year push toward de-dollarization and alternatives like the ruble, yuan, or BRICS mechanisms.
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Joint ventures in oil, LNG, and offshore/hard-to-recover reserves, allowing US firms to recover prior losses. Cooperation on critical raw materials like lithium, copper, nickel, platinum. Long-term aviation contracts and potential US involvement in Russian manufacturing.
Preferential access for US companies to the Russian consumer market. Collaboration on nuclear energy including AI-related ventures. Joint promotion of fossil fuels over low-emission policies seen as favoring China and Europe.
The memo argues that re-embracing the dollar would help Russia expand its foreign exchange market, reduce balance-of-payments volatility, and stabilize its economy—benefits that would require lifting Western sanctions and restoring access to dollar-based systems like SWIFT.
This represents a dramatic policy shift for Russia, which has aggressively pursued de-dollarization since 2022 sanctions like shifting trade with China and others to national currencies, building BRICS alternatives. A pivot back could slow global de-dollarization momentum, reinforce the dollar’s dominance, and impact markets; recent reports noted sharp drops in gold and silver prices on the news, as it undercuts narratives around dollar alternatives and inflation hedges.
However, this is still at the proposal stage—an internal pitch, not a finalized agreement. It would depend on major concessions (sanctions relief, Ukraine-related deals), and reactions vary: Some view it as tactical leverage or bargaining in US-Russia talks.
Others note Russia’s deepening ties with China make a full pivot unlikely without significant incentives. Kremlin spokesperson Dmitry Peskov has commented that the dollar remains attractive if not “weaponized,” but Russia hasn’t formally abandoned alternatives.
BRICS de-dollarization efforts remain a key ongoing initiative among the bloc’s members (Brazil, Russia, India, China, South Africa, plus expanded partners like Egypt, Ethiopia, Iran, UAE, Indonesia, and Saudi Arabia), aimed at reducing reliance on the US dollar in international trade, reserves, and payments.
This is driven by concerns over US sanctions, dollar “weaponization,” geopolitical tensions, and the desire for greater financial sovereignty in a multipolar world. De-dollarization has made tangible but gradual progress, particularly in intra-BRICS trade: Local currency settlements now account for 60-67% of BRICS trade overall, with even higher figures in specific bilateral pairs.
BRICS nations are actively reducing dollar reserves down from ~58.2% in 2024 to ~56.92% in early 2026 across the group.
Central banks especially in BRICS+ have accelerated gold purchases, breaching the 5,000-tonne milestone in annual global buying in recent years, with gold increasingly viewed as a neutral reserve asset to hedge against dollar exposure.
Russia, China, and India conduct much of their energy and commodity trade without dollars, and similar patterns exist with Brazil and others. However, progress is uneven and faces challenges: No unified BRICS currency exists yet (a common one remains a “distant dream” per analysts).
Efforts focus on practical alternatives like linking national central bank digital currencies (CBDCs) — e.g., India’s digital rupee, China’s digital yuan, Russia’s digital ruble — for interoperable cross-border payments. The Reserve Bank of India (RBI) has proposed formally linking BRICS CBDCs to simplify trade and tourism, potentially on the agenda for the 2026 BRICS Summit (hosted by India).
Projects like BRICS Bridge (a blockchain-based payment system), mBridge (for CBDC settlements), and experimental “BRICS Unit” (a settlement unit backed ~40% by gold and 60% by member currencies) are in pilot or early stages. The New Development Bank (NDB) has ramped up loans in local currencies.
Impact of Recent Russia-US Developments
The February 2026 Bloomberg-reported Kremlin memo proposing Russia’s return to dollar settlements including for energy in a potential Trump-era deal has sparked debate. This could include sanctions relief, SWIFT access, and US involvement in Russian energy/minerals.
It represents a potential tactical shift for Russia to diversify away from over-reliance on China/yuan and stabilize its economy.
Analysts note it would slow de-dollarization momentum but not end it — China, India, and others continue pushing alternatives independently. Over 60% of BRICS trade is already in local currencies; a Russian pivot might stall broader bloc unity but wouldn’t reverse existing bilateral non-dollar flows.
Market reactions reflect short-term narrative shifts, but structural trends like gold hoarding and CBDC links persist. Some view Russia’s proposal as leverage in US talks possibly tied to Ukraine resolution rather than a full abandonment of BRICS.
The dollar remains dominant globally still ~58-60% of reserves, per various metrics, bolstered by network effects, deep markets, and lack of viable full alternatives. De-dollarization is more about diversification and risk reduction than outright replacement — a gradual “multipolar” shift rather than collapse.
Challenges include coordination hurdles, convertible currency limits, political risks and internal BRICS differences. 2026 could be pivotal with India’s BRICS presidency and summit focusing on payment interoperability, but experts see no imminent “BRICS currency shock.”
BRICS efforts are accelerating in targeted areas (local currencies, gold, digital systems) but remain incremental and resilient to setbacks like potential Russian realignment. The process is chipping away at dollar hegemony without fully dismantling it yet.