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Russia Threatens To Ditch the Dollar

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Putin with Ukraine and economic affairs adviser Sergei Glazyev

Russia Threatens to Ditch Dollar,
and Default On US Bank Loans

by Fintan Dunne - 4 March 2014, 5pmEST 

A Russian economic security adviser close to President Putin has warned that Russia would respond to US sanctions over Ukraine by switching away from the dollar to other currencies and creating its own payment systems for trade with friendly nations.

Putin’s adviser, Sergei Glazyev said Tuesday that US sanctions would also inevitably force a default on loan repayments to US banks.

"If sanctions are applied against state structures, we will be forced to recognize the impossibility of repayment of the loans that the US banks gave to the Russian structures. Indeed, sanctions are a double-edged weapon, and if the US chooses to freeze our assets, then our equities and liabilities in dollars will also be frozen. This means that our banks and businesses will not return the loans to American partners," he said.

The Kremlin imm…