Putin: Russian Economy Won't Be Dominated by 'Dollar Dictatorship'

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Putin: Russian Economy Won't Be Dominated by 'Dollar Dictatorship'
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Russia is leaving the dictatorship of the market where oil goods are
based on the dollar and won't back down in face of a drastic drop in
world prices on energy resources, Russian President Vladimir Putin
said Friday.

By Sputnik
November 14, 2014 "ICH" - "Sputnik"- MOSCOW, November 14 (Sputnik) -
Russia plans to leave the "dollar dictatorship" of market oil prices
and turn to using the country's national currency and the Chinese
yuan, Russian President Vladimir Putin said Friday.

"We are leaving the dictatorship of the market where oil goods are
based on the dollar and will increase the possibilities of using
[other] national currencies: the ruble and the yuan," Putin said in an
interview with the Russian state news agency TASS.

On a November 9 meeting on the sidelines of the APEC summit Putin and
Chinese President Xi Jinping discussed the possibility of using the
yuan in transactions in fields of mutual cooperation.

Putin said in his Monday speech at the Asia-Pacific Economic
Cooperation (APEC) summit in China that accounting in the ruble and
yuan will most likely weaken the dollar's influence on the global
energy market.

Putin added that possibilities to increase the use of the Russian and
Chinese currencies in bilateral trade, particularly in the energy
sector, were being studied.

Russian Economy Unthreatened by Possible Drastic Drop in Energy Prices

Russian authorities have not excluded the possibility of a drastic
drop in world prices on energy resources but are still prepared to
uphold the country's social obligations and economy, Russian President
Vladimir Putin said Friday.

"We're considering all of the different scenarios, including a
so-called catastrophic drop in the prices of energy resources, which
is completely possible, we acknowledge this," Putin said.

"We are an oil and gas producing country and we treat our reserves
carefully. They're large enough and this allows us to be sure that we
will fully fulfill all of our social responsibilities and will uphold
all of the budget processes within definite frameworks and throughout
the entire economy," he told the Russian state news agency TASS in an
interview.

The Russian leader added that sometimes the global economy faces
imbalances of capital on the one hand, and commodities on the other
hand, which may appear due to political considerations. The countries
with emerging economies get into very difficult position during those
times, especially those, which do not possess reserves similar to
Russia's.

"I'd like to say once again that I expect us to have a joint
discussion and seek a joint solution on how to change things for the
better and eliminate these imbalances," Putin said.

In recent months Russia's economy has been showing signs of a minor
slowdown due to geopolitical tensions and Western sanctions over
Russia's alleged role in the Ukrainian crisis.

As a result of falling oil prices, the Russian ruble has fallen 23
percent against US dollar in the past three months. In October,
Russian Economic Development Ministry increased predicted inflation
rates for 2014, setting the forecast for this year to 7.2 percent from
the original 6 percent.

Russia's Oil Giant Rosneft Has No Financial Problems

Financial examination demonstrates that Russia's major oil company
Rosneft is not in financial difficulty, Russian President Vladimir
Putin said on Friday.

"Recently, we checked the financial standing of Rosneft and didn't
find any problems there whatsoever. No financial problems at all,"
Putin said in an interview with the Russian state news agency TASS.

In October, Russia's Finance Minister Anton Siluanov said that Rosneft
had asked for over 2 trillion rubles ($42 billion) from Russia's
National Wealth Fund to help withstand Western sanctions.

Putin stated that if the company needs more money, it must prove that
the funds will be spent in such a way that there will be returns for
the entire economy.

"I'd like to stress once again that if they need more money they must
prove that these funds... will be spent for specific purposes and there
will be returns for the entire economy, on top of returns for the
company," Russian leader explained.

Putin did not rule out the possibility that Rosneft could receive
funds if necessary, but not before all the relevant factors are
carefully examined.

"This will be a real assessment and I don't rule out that Rosneft may
get some funds. Yet the amount of such allocations and the terms
require a thorough analysis. No hurry here," Putin said, adding that
he has already participated in discussions on this topic with
Government Cabinet members and company heads.

"If I were a Rosneft CEO, I would ask for money, too. Why not? Who
doesn't ask for it today? Everyone's asking for money and hoping to
get it. The Government Cabinet - I know their position because I
discussed it both with the Cabinet and Rosneft - will make a decision
based not just on the needs of the company which we truly treasure and
which we will definitely help," Putin concluded.

Rosneft is a Russian oil giant, and one of the leaders in the
country's petroleum industry. The company's activities include
hydrocarbon exploration and production, offshore projects, hydrocarbon
refining, and crude oil, gas and product marketing in Russia and
abroad.

Putin Calls for Careful Consideration on Use of Reserves to Solve
Economic Problems

The Russian government is not going to use reserve funds to solve
current economic problems without carefully considering that it will
have a positive outcome for the country's entire economy, Russian
President Vladimir Putin said Friday.

"Strictly speaking, we were planning this before, and in the current
deteriorating conditions we will do so. But it does not mean that we
should 'burn' these reserves without even thinking, not expecting
adequate economic outcomes, only to solve the current problems," Putin
said.

In an interview with Russian state news agency TASS, the Russian
president noted that government funds had been available "before all
those negative events connected with the fluctuations in the ruble's
exchange rate or the fall in oil prices".

At the same time, the president has noted that there is no need to use
those funds to accelerate the Russian economy.

"If the funds are used, it will be done in several ways. One of them
is the infrastructure development. That is exactly what we were
planning to use the NWF [National Wealth Fund] money for," Putin
added.

On October 2, Russian Finance Minister Anton Siluanov said authorities
had no plans to use resources from the Reserve Fund in 2015, but
retained the right.

Nevertheless, in mid-October, Russian President Vladimir Putin stated
Russia had enough reserves to meet state budget goals, regardless of
global political and economic trends. He added the country's budget
could be adjusted to reflect fluctuations in oil prices, but vowed
social spending would not be cut.

US 'Drops Out of Context' in G20 Decisions, Acts According to Own Interests

The United States does not implement decisions agreed at the G20
summit if they are not in line with its own interests, thus risking
irrelevance in the global arena, Russian President Vladimir Putin
stated Friday.

In particular, according to the Russian president, it concerns the
decision on strengthening the role of emerging economies in the IMF
with the redistribution of quotas.

"The US Congress blocked that decision and that's all. The
negotiators, our partners, are saying: well, we would be happy [to do
that], we did sign it, but the Congress does not let it through. So
much for decisions," Putin told the Russian state news agency TASS in
an interview.

The Russian president added that the decision "shapes the
international public opinion" as all the G20 countries and
international actors find the decision reasonable and right.

As for US Congress' refusal to pass the law on the redistribution of
IMF quotas, it "indicates that the United States is dropping out of
the general context of resolving the problems facing the international
community. But nobody cares to remember this. Assuming its monopoly on
world mass media, this information is hushed up. An impression is made
that it does not really exist," Putin said.

Putin also noted that the G20 forum is still relevant. "The G20 is a
good platform to meet each other, discuss both bilateral relations and
global problems, and develop at least some sort of common
understanding what this or that problem is all about, and how to
resolve it, to make a road map for joint work."

"This is the most important thing because it is totally unrealistic to
expect that everything that may be said there will be implemented,
especially since the decisions themselves are not mandatory. To a
certain degree they are neglected. And they are not observed whenever
and wherever they are not in line with somebody's interests. First and
foremost, this is about the interests of global players," the Russian
president said.

Answering a question about whether decisions made at the G20 summit
could be made mandatory, Putin said it is "impossible."

"You know that there have been no such precedents in international
practice. Except for the UN Security Council decisions regarding
international security. But that procedure was generated in the very
dramatic conditions of the bloody World War II. It is just unrealistic
to expect that these days some new mechanisms may be established to
enforce compliance with decisions, let alone decisions concerning
economy. Let me say once again, all this is of moral, political and
economic nature. Which in itself is not bad at all," the Russian
president said.

On November 15-16, Putin will visit Brisbane, Australia for the ninth
G20 summit, which will see up to 4,000 delegates attending. The summit
will focus on the recovery from the global financial crisis, climate
change, employment and labor mobility, among other topics.

Putin to Be Tightlipped on Western Sanctions During G20 Summit in Australia

Russian President Vladimir Putin on Friday said he would not bring up
the issue of sanctions during the G20 summit in Australia on November
15-16 and believes the sanctions imposed against Russia are the West's
geopolitical mistake.

"If the subject comes up, then of course I'll say something, but
personally I'm not going to bring this issue [sanctions] up for
discussion because I think it's useless," Putin said.

"I believe this is a mistake even from the point of view of their
[Western countries] geopolitical interests," he told the Russian state
news agency TASS in an interview.

On November 9, on the sidelines of the Asia-Pacific Economic
Cooperation (APEC) summit in Beijing, the Russian president spoke
about the necessity to consider Asian markets and currencies to
partially substitute access to the financial resources of the European
Union and the United States.

The United States, the European Union and a number of other countries
have introduced several rounds of economic sanctions against Russia,
targeting its banking, energy and defense sectors in response to the
country's alleged role in the Ukrainian conflict, an accusation Moscow
has repeatedly denied. Russia imposed a one-year ban on certain food
imports from those countries.

On November 15-16, the city of Brisbane in Australia will host the
ninth G20 summit, which will see up to 4,000 delegates attending. The
summit will focus on the recovery from the global financial crisis,
climate change, employment and labor mobility, among other topics.

Putin Plans to Meet with German Chancellor Merkel at G20 Summit in Australia

Russian President Vladimir Putin said that he has scheduled several
bilateral meetings in the framework of G20 summit in Australia,
including the one with German Chancellor Angela Merkel.

The G20 summit will take place on November 15-16 in the Australian
city of Brisbane. A morning before the official ceremony, leaders will
hold an informal meeting to discuss current situation in the global
economy, existing risks, threats and possibilities to overcome those.

"I have scheduled meetings there. With the German Chancellor... a lot of
meetings," Putin said in an interview with the Russian state news
agency TASS.

Earlier it was reported that Putin also plans to meet with UK Prime
Minister David Cameron and French President Francois Hollande.

In his interview, Russian leader added that existing problems and
misunderstandings have not had an impact on his relations with Merkel.

"You know that we are guided by interests instead of sympathies and
antipathies... And she had also been guided by same interests, just like
any other leader of a nation, state or government. This is why I see
neither considerable changes nor any substantial alterations in the
nature of our relations," Putin said.

The Russian leader and the German Chancellor have been holding
frequent talks amid the Ukrainian crisis and the approaching deadline
to reach Iranian nuclear agreement. While Putin and Merkel hold phone
conversations every couple of weeks, the last time when they held
bilateral meeting was during the ASEM summit in Milan in October.

The leaders share similar views toward many situations, however their
approach to conflict in Ukraine differs. Merkel supported European
Union's sanctions against Russia over Ukrainian crisis, blaming Moscow
for meddling in Ukrainian internal affairs -- a claim Moscow repeatedly
denied. In November, German Chancellor refused to lift anti-Russian
sanctions, saying that Russia's approval of the elections in Donetsk
and Luhansk People's Republics in eastern Ukraine contradict the Minsk
agreements on crisis settlement.