According to ex-Russian President Dmitry Medvedev, a new global financial order will be negotiated, and the West will no longer have a veto.
The “hellish” sanctions imposed on Russia by the US, EU, and their allies over the Ukraine conflict have failed to cripple the country, instead “returning to the West like a boomerang,” according to Medvedev, the former Russian president who is now the deputy chairman of the Russian Security Council.
According to Medvedev, the US and EU have “tarnished their reputation” by blocking the Russian central bank’s reserves.
“It is impossible to trust those who freeze the accounts of other states; steal other people’s business, assets and personal possessions, compromising the principles of sanctity of private property,” he added.
Following the outbreak of the conflict in Ukraine in late February, the United States and the European Union froze nearly half of Russia’s $300 billion in foreign currency reserves.
Confidence in reserve currencies is “fading like the morning mist,” and the prospect of abandoning the dollar and euro in this role does not seem like such an unrealistic prospect anymore, he said. “The era of regional currencies is coming.”
“No matter if they want it or not, they’ll have to negotiate a new financial order,” Medvedev said. “And the decisive voice will then be with those countries that have a strong and advanced economy, healthy public finances and a reliable monetary system. And not with those who endlessly inflate their public debt, issuing more and more pieces of paper into circulation which aren’t backed by national wealth.”