Russia said on Thursday it would completely remove the US dollar from its rain bag, a move aimed at resisting US pressure two weeks before the summit of the two countries’ leaders.
Finance Minister Anton Siluanov told an economic forum in St. Petersburg. Petersburg that the National Wealth Fund will convert its dollar assets into euros, yuan and gold.
He said the change would take a month, and once completed, the fund would have 40% euros, 30% yuan and 20% gold, with each British pound and Japanese yen 5%.
Siluanov said the fund currently owns 35% of assets in dollars and the other with 35% in euros.
The fund raises oil revenues to boost the country’s resilience to market volatility and help fund major national projects. It accounted for about $ 186 billion in total assets as of last month, which is part of the nation’s nearly $ 600 billion gold and heavy gold reserves.
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The announcement comes just two weeks before a planned summit between Russian President Vladimir Putin and US President Joe Biden. They are expected to meet in Geneva on June 16.
Russia has long pushed for a reduction in the dollar’s share of its hard-earned currency as it faces tensions over US sanctions between Washington and its allies.
Asked about the latest announcement, Kremlin spokesman Dmitry Peskov told reporters that many countries, including Russia, had tried to reduce their confidence in the dollar amid “concerns about the reliance on big money.”
Speaking next to the St. In St. Petersburg, Deputy Prime Minister Andrei Belousov said the decision to reduce the dollar was linked to “threats to sanctions imposed on the US leadership.”
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Russia’s relations with the U.S. and its allies have deteriorated to the lowest level since the Cold War since Moscow’s 2014 occupation of the Crimean Ukraine, allegations of Russian interference in elections, hacking attacks and other issues.
