Trump's Trump Card? Russia Proposes To Embrace Dollar Again In Potential Blow To Beijing

Last Updated:February 12, 2026, 21:55 IST

The proposal represents a dramatic about-face from Russia's long-standing policy of "de-dollarization"- reducing dependence on the US currency.

The Kremlin drafted an internal document proposing a wide-ranging economic partnership with the Donald Trump administration that would see Russia return to using the US dollar for international transactions. The high-level memo, reviewed by Bloomberg, outlined seven areas where Russian and US economic interests could align following a potential deal to end the war in Ukraine.

What Is The Seven-Point Proposal?

According to the internal Russian document, the Kremlin sees potential convergence with the US in seven key areas. The first involves long-term aviation contracts to modernize Russia’s aging fleet of aircraft, along with potential US participation in Russian manufacturing. The second proposes joint oil and LNG ventures, including offshore and hard-to-recover reserves, which would allow American firms to recover past losses from their previous investments in Russia.

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The third area offers preferential conditions for US companies to return to the Russian consumer market, while the fourth suggests cooperation on nuclear energy, including for AI ventures. At the heart of the proposal is the fifth point: Russia’s return to the dollar settlement system, potentially including for Russian energy transactions. The sixth area focuses on cooperation on raw materials such as lithium, copper, nickel and platinum. Finally, the seventh point proposes working together to promote fossil fuels as an alternative to climate-friendly policies that favor China and Europe.

Why This Matters?

The proposal represents a dramatic about-face from Russia’s long-standing policy of “de-dollarization"- reducing dependence on the US currency. Long before the 2022 invasion of Ukraine, Russian President Vladimir Putin had been working to lessen Russia’s reliance on the dollar as part of a broader challenge to US financial dominance.

That strategy became essential after the US and its allies weaponized their control over dollar transactions to impose devastating sanctions on Russia following the invasion. Since then, Moscow has been developing alternative payment systems and trade in other currencies. Returning to dollar settlement would mean submitting to Washington’s financial dominance again and reversing years of effort to make the Russian economy less vulnerable to US pressure.

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The China Factor

China has become a crucial supplier of components and raw materials for the Russian war machine since Western sanctions shut off other sources. A pivot back to the dollar and closer economic ties with Washington would directly undermine Russia’s deepening relationship with Beijing- something Chinese leaders would view as a betrayal. The memo would also hand the Trump administration a major victory in its apparent objective of weakening the relationship between Moscow and Beijing.

The proposals come as potential economic agreements between the US and Russia are being negotiated as a key component of any future peace accord for Ukraine. The US has already proposed gradually lifting sanctions on Russia as part of any peace agreement- a necessary first step for Russia to start transacting in dollars again.

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