US Making Mistake by Undermining Dollar’s Credibility as Reserve Currency

The Russian leader addressed the participants on the opening day of the Russian Energy Week, highlighting that the Russian fuel and energy sector will open new opportunities for investment projects and cooperation, Sputnik reported.

"It seems to me that our American partners are making a colossal strategic mistake, they are undermining confidence in the dollar as a universal, in fact, the only reserve currency today, undermining faith in it as this universal tool," he stated, calling such a policy strange and surprising.

"But it seems to me that this is a typical mistake of any empire — when people think that everything is so powerful, so strong and so stable that there will be no negative consequences. But no, they will come sooner or later," Putin noted.

American LNG on the European market is 30% costlier than Russian pipeline gas; Russia supplies energy resources to Europe at competitive prices, the Russian president stated.

“There are things that mean more than political intrigues,” Putin commented on energy supplies to Europe.

The prices of supplies of Russian gas to Europe will always be competitive, Putin noted, adding that "we are a traditional supplier, a pipeline gas supplier. We have been doing this since the 1960s, we are doing it extremely responsibly, professionally and at very competitive prices for the European market … The distance between Russia and Europe makes pipeline supplies optimal and the price will always be competitive. Always".

Putin declared that the arguments of US President Donald Trump regarding the supply of liquefied natural gas (LNG) to Europe are insolvent, while also noting that Trump is fighting for the interests of his country, stressing that "I would do the same".

The EU initiative to create a financial mechanism for continuing trade with Iran despite US sanctions came late, but it is better late than never, Putin said.

"It [the initiative] came late. But it is better late than never… French President [Emmanuel Macron] has recently given a speech in New York and talked directly about the need to increase the EU’s economic sovereignty and reduce dependence on the United States. And this is right," Putin added.

Last week, the EU foreign affairs chief, Federica Mogherini, said that the foreign ministers of the remaining signatories to the Joint Comprehensive Plan of Action (JCPOA) had agreed to create a Special Purpose Vehicle (SPV) that would facilitate trade between European companies and Iran amid US sanctions against Tehran. She explained that the legal entity would be established to enable European companies to continue legitimate transactions with Iran in accordance with the EU legislation.

Putin also said that Moscow wants all foreign forces, including the Russian military, to eventually withdraw from Syria.

The US has two options for the Syria situation: either get Damascus' permission to remain in the country or a UN mandate, there's no other way, according to Putin.

"There are two possibilities to remedy the situation. The first is that the United States should receive a mandate from the UN Security Council to have its armed forces present on the territory of a third country, in this case on the territory of Syria. Or to receive an invitation from the legitimate government of Syria to place their military forces there for some purpose. International law does not provide a third way envisaging the presence of one country on the territory of another," Putin stressed.

Putin also stated at the plenary session of the Russian Energy Week forum that "we have already increased output by 400,000 barrels per day, as agreed with our partners. If necessary, we can boost this by another 200,000-300,000 barrels per day".

"Russia will continue to promote dialogue between oil-producing countries in order to ensure the stability of oil prices, create conditions for the sustainable development of the industry and for the implementation of long-term investment plans," Putin noted.

Trump is partially right in his estimates regarding current oil prices and Russia would be quite satisfied with $65-75 per barrel, Putin stated.

"President Trump… believes that the price is high. But it seems to me that he is partly right. We would quite be satisfied with 65-70-75 dollars per barrel. This is quite normal in order to ensure the efficient operation of energy companies and the investment process," Putin underlined.

“... but let’s be honest. Donald, if you want to find the culprit for the rise in prices, you need to look in the mirror,” Putin said, adding that current prices are “largely the result of the current US administration — these expectations of sanctions against Iran, the political problems in Venezuela. Look at what’s happening in Libya. The state is destroyed. It’s the result of irresponsible policies which have a direct impact on the world economy”.

The Russian president stressed that Russia’s advantages in this sphere are “not only the largest reserves of natural gas”, but also the availability of delivery vehicles, pipeline infrastructure, which along with low costs, ensure the stability of the gas network's position in the market.

Commenting on the issue, Russian presidential spokesman Dmitry Peskov said that Putin could meet Iranian Oil Minister Bijan Zangeneh on the sidelines of the forum, while Russian presidential aide Yury Ushakov noted that the president might also have a brief meeting with Royal Dutch Shell CEO Ben van Beurden.

The second Russian Energy Week will be held from October 3 to October 6.

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