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10 January, 2016

De-dollarization continues: Russia's oil benchmark futures to be priced in rubles

Step-by-step Russia, China and other emerging economies are taking measures to reduce their dependence on the US dollar, F. William Engdahl notes, referring to Russia's crude oil benchmark initiative; the move could deal a dramatic blow to the "petrodollar's" dominance.

Russia has taken a significant step which will undermine the current Wall Street oil price monopoly: Russia's own crude oil benchmark futures contract will price oil in rubles and no longer in US dollars, American-German researcher, historian and strategic risk consultant F. William Engdahl remarks.

He explains that the setting of an oil benchmark price is a cornerstone of the method used by omnipotent Wall Street bankers to control world oil prices. “Oil is the world's largest commodity in dollar terms,” the historian stresses.

Engdahl focuses attention on the fact that the sale of oil denominated in US dollars is essential for the support of the American currency's leading role. Indeed, the US dollar's status as world's major reserve currency is one of two pillars of Washington's hegemony since the end of the Second World War (the other one is the US military supremacy), the historian emphasizes.

It is hard to overestimate the importance of a Russian oil benchmark creation, since Russia is the world's biggest oil producer.

However, the move is by no means the only measure emerging economies are taking in order to lessen their dependence on the US currency. China, the world's second-largest oil importer is mulling a plan to launch its own oil benchmark contract that will be denominated in the Chinese yuan, claims Engdahl.

Step-by-step, Russia, China and other emerging economies are taking measures to lessen their dependency on the US dollar, to 'de-dollarize.' Oil is the world's largest traded commodity and it is almost entirely priced in dollars. Were that to end, the ability of the US military industrial complex to wage wars without end would be in deep trouble,” the American historian stresses.

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The battle in 2016 will be wilder, as the Sino-Russian alliance will accelerate efforts to create an autonomous economic system before the US elections. Any GOP or Hillary Clinton in the US presidency will become the suitable tool to create more trouble for Russia internally and externally, provoking a dangerous warm conflict.

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