[RT] 2022-06-22: Russia needs ‘golden ruble’ – report

Original link to this article can be found here: 

https://www.rt.com/business/557611-russia-golden-ruble-sanctions/

A cryptocurrency backed by gold would be immune to sanctions, according to VEB.RF analysts

© Sputnik / Grygory Sysoyev

Russia needs a new mechanism for international settlements to be able to operate under Western sanctions, a report by the country’s development corporation VEB.RF says.

According to the report, the introduction of financial sanctions against Russia, which, despite state measures, results in economic losses for the country, also indicates that a transition to a completely different national financial and monetary system is in order.

VEB.RF analysts suggest that Russia should create a gold-backed stablecoin under the working title ‘golden ruble’. According to their research, Western countries will have no opportunity to block operations carried out in such a currency, since its exchange rate will be pegged to the gold rate on the world market, not to the dollar, the euro or, for that matter, the fiat ruble itself. Gold backing would ensure the currency’s immunity to sanctions, and the ‘golden ruble’ could be used freely in external transactions, including those between third countries without the participation of Russia.

READ MORE: Ruble rally continues to defy sanctions

Analysts have also proposed launching a mechanism for working with cryptocurrencies for sanctioned companies on crypto exchanges in friendly states, or the creation of a national crypto exchange to facilitate ‘golden ruble’ trading.

VEB.RF suggests that the Bank of Russia should develop a system of international settlements with friendly countries in their national digital currencies based on distributed ledger technologies, and introduce a hedging system for eliminating currency risks.

Besides diving into the digital currency world, analysts say Russia’s new financial system could incorporate large-scale use of barter schemes and new offshore zones, especially with China. Further on, they suggest creating a blockchain unit within the BRICS framework, which would mirror the IMF special drawing rights system, albeit in digital form.

The VEB.RF report also draws attention to Russia’s MIR payment system (a Visa and Mastercard analogue) and SWIFT-like SPFS interbank messaging mechanism, and suggests that they should be expanded outside of Russia, at least within the CIS bloc and China.

[RT] 2022-06-22: BRICS developing new global reserve currency – Putin

Original link to the article can be found here:

https://www.rt.com/business/557627-brics-developing-global-reserve-currency/

It will be based on a currency basket of the five-nation bloc, according to the Russian president

© Getty Images / Jorg Greuel

President Vladimir Putin said on Wednesday that the BRICS countries – Brazil, Russia, India, China, and South Africa – are currently working on setting up a new global reserve currency.

“The issue of creating an international reserve currency based on a basket of currencies of our countries is being worked out,” he said at the BRICS business forum.

According to the Russian president, the member states are also developing reliable alternative mechanisms for international payments.

Earlier, the group said it was working on establishing a joint payment network to cut reliance on the Western financial system. The BRICS countries have been also boosting the use of local currencies in mutual trade.

[RT] 2022-06-22: Lithuania ready to expand Kaliningrad blockade – president

 Original link to this article can be found here:  

https://www.rt.com/russia/557626-lithuania-president-kaliningrad-blockade/

The country is prepared to face retaliatory steps by Russia, Gitanas Nauseda has said

Cargo train cars pictured in Kaliningrad, Russia on June 20, 2022. © Sputnik / Mikhail Golenkov

Vilnius is ready to expand the list of goods banned from transit to Russia’s exclave of Kaliningrad should the European Union introduce new sanctions against Moscow, Lithuanian President Gitanas Nauseda said on Wednesday. The country is also ready to face any potential retaliatory measures Russia might introduce, he told Reuters in an interview.

“We are ready and we are prepared for unfriendly actions from Russia, such as disconnection from the BRELL [power grid] system, or others,” Nauseda said.

The president stressed that the transit restrictions were not a sovereign move by Lithuania, but merely the implementation of the EU sanctions against Moscow introduced over the ongoing conflict in Ukraine. “We feel the support of the European Union, because this is a decision made by the European Union,” he said, adding that the country was ready to expand the list of banned goods should the bloc introduce new restrictions against Russia.

“We are looking forward to implementing the next stages of the sanctions, and it would be very good if the European Commission explains their content to the Russian authorities. It could remove some of the current tensions, which are not in the interest of either the European Union or Russia,” Nauseda stated.

Read more

 EU comments on Lithuania-Russia row

Over the weekend, Lithuania’s national railway operator banned the flow of sanctioned goods between the region and the rest of Russia, citing guidelines from the European Commission. The restrictions have also affected road traffic into the exclave, according to Kaliningrad officials. Both Vilnius and the EU insist that the restrictions do not amount to a “blockade” of the exclave.

Moscow, however, has unequivocally branded Vilnius’ move as an “economic blockade” of Kaliningrad Region, stating that it violated the country’s international obligations to ensure the uninterrupted transit of goods to the exclave. Kremlin spokesman Dmitry Peskov said on Monday that Vilnius’ decision was “unprecedented” and in “violation of anything and everything.”

The head of Russia’s Security Council, Nikolay Patrushev, warned that the “blockade” might invoke a response from Moscow that would “have a serious negative impact on the people of Lithuania.”

“Of course, Russia will respond to hostile actions. Appropriate measures are in the works, and will be adopted in the near future,” Patrushev told reporters during a visit to Kaliningrad on Tuesday.