The US has lost its primacy in global trade and the US dollar is gradually losing its position as an international payment instrument, Igor Sechin, the Chairman of the XVII Verona Eurasian Economic Forum and Chief Executive Officer of Rosneft, said at the Special Session. He emphasised that US sanctions played no small part in this.

For decades, the United States has tried any means to strengthen its leadership in trade, including pressure through the World Trade Organisation (WTO). However, unable to fully subordinate the WTO to its interests, the U.S. administration "does not hesitate to take unilateral measures contrary to WTO norms. Import duties regularly imposed by the White House to protect U.S. manufacturers are a prime example of such a policy," Sechin said.

The head of Rosneft recalled in his speech how the system of global commodity trade in dollars developed after the US abandoned its obligation to back its currency with gold. The concept of "petrodollar" appeared in 1974 because of an agreement between Saudi Arabia and the United States. "The direct involvement of the U.S. Central Intelligence Agency in efforts to attract capital from the Gulf States into the U.S. financial market has been documented. And in 1978, Saudi Arabia literally saved the US dollar from imminent devaluation by reaffirming its commitment to pegging oil prices to that currency," Sechin noted.

He recalled that a 50-year agreement to settle payments for Saudi oil in dollars ended this summer. "However in practice it is being applied," the head of Rosneft said.

Igor Sechin expressed confidence that this issue will be developed in the contacts agenda between the new US administration and Saudi representatives. “Meanwhile, the media believe that President-elect Trump and Yasser al-Rumayyan, chairman of Aramco and manager of Saudi Arabia's Sovereign Fund, are discussing golf development during their increasing contacts,” the Rosneft head noted.

US President-elect Donald Trump's intention to protect the dollar's position is at odds with current US policy, which bans its use with sanctions, the report said. Over the past 20 years, the number of restrictions imposed has exceeded 15,000, and the sanctions do not even require proof of guilt, which is contrary to the basic principles of international law. "Using the dollar as a sanctions tool is a big mistake as trade will never stop. Both energy security and life in general depends on it. There will always be alternatives," the head of Rosneft said.

According to Sechin, limiting dollar settlements will increase the capabilities of national currencies, and the main competitor of the US currency will be gold, which has been used for thousands of years for settlements.

According to the World Gold Council, in the last three years alone, gold's share of the world's foreign exchange reserves has risen from 12 per cent to 20 per cent. The head of Rosneft believes that the solution for removing risks from the dollar is evident - it is necessary to stop using the dollar as an instrument of sanctions.

"We are confident that the realisation of the perniciousness of the sanctions policy will come and the right decision will be taken by reasonable people who understand the importance of the dollar as a world and national currency. Winston Churchill said: “You can always count on Americans to do the right thing - after they've tried everything else," Igor Sechin said.

Rosneft Information Division
Rosneft Oil Company
December 5, 2024