BRICS: Saudi Arabia and Russia Forge New Economic Ties: A definitive farewell to the Dollar?

Saudi Arabia, like a few other Gulf countries including the United Arab Emirates (UAE), has recently been permitted to join the BRICS. With one of its influential members, Russia, the Saudi Kingdom has discussed strategic issues, including the move away from the dollar—but that’s not all.

Saudi-Russia Meeting to Discuss BRICS and the Move Away from the Dollar…

Saudi Crown Prince Mohammed bin Salman recently held a significant meeting with Russian President Vladimir Putin. This event is noteworthy as it highlights a pivotal moment in the global geopolitical landscape.

Essentially, the discussions between the two leaders, considered authoritarian, revolved around the strategic initiative to end the US dollar’s dominance in international trade.

This crucial meeting took place in the context of Saudi Arabia’s recent entry into the BRICS alliance. A decision that underscores the Arab country’s intention to diversify its global partnerships.

But this meeting also had a hint of strengthening bilateral relations between Saudi Arabia and Russia. The two countries explored possibilities for increased collaboration in the face of escalating Western sanctions against the Russian currency.

One notable aspect of this collaboration is the promotion of local currencies in their bilateral trade. This move is aligned with the overall objectives of BRICS to reduce their dependence on the US dollar.

BRICS: Saudi Crown Prince Meets With Putin to Discuss US Dollar https://t.co/EC0uLEVwQw

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And on Oil…

This rare visit by Vladimir Putin to Saudi Arabia, his first since 2022, amplifies the significance of the meeting. Its geopolitical ramifications are considerable, with potential implications for the global economic order.

Indeed, over recent months, the BRICS have intensified their dedollarization program. This, by indicating a collective commitment to challenge the greenback’s dominance in international transactions.

One of the means to achieve this is precisely through oil. As Saudi Arabia and Russia are among the world’s largest crude oil producers, it’s evident that this issue was central to the discussions between bin Salman and Putin.

The meeting comes at a time when crude oil prices are declining in value. This is despite the recent global oil supply reduction efforts undertaken in the past months to boost the prices.

The ongoing efforts, illustrated by high-level meetings such as the one between Crown Prince Mohammed bin Salman and President Putin, tell us something. That there is a concerted effort to reshape the global economic landscape and question the existing monetary status quo!