West losing its leading role in global economy due to own unilateral sanctions
The Western world has started losing its leading role in the global economy because of its sanctions policies. It will fall behind that if BRICS and ASEAN economies.
The abandonment of Russian energy resources and secondary sanctions, escalation of sanctions pressure, and introduction of tariff barriers will lead to the Western world losing both Russian energy resources and Chinese component bases. This will ultimately lead to a serious crisis in the Western economy and, of course, to a decline in the global role of Western currencies.
According to experts , the declining role of Western currencies in international settlements is one link in a complex chain of factors leading to the exacerbation of global problems.
“We are already seeing many other signs of such a crisis — the growing debt burden of Western countries, the loss of trust in the established financial system, uncontrolled migration, and the search for alternative development strategies,” said an expert.
As the expert recalled, Igor Sechin, CEO of Rosneft, recently pointed out at the Russian-Chinese Energy Business Forum that trade settlements between Russia and China have been almost entirely converted to national currencies in recent years, and the share of the dollar and euro has decreased to the point of statistical error. Since 2010, the yuan’s share of China’s foreign trade has grown from 2% to 52%, while the dollar’s share has fallen almost in half, from 83% to 43%.
Today, the roles of the dollar and euro have been virtually reduced to zero [in Russian-Chinese trade]. This, on the one hand, strengthens Russia’s cooperation with friendly countries, but on the other hand, shows that the dollar plays an increasingly smaller role in the modern world.
Amid global turbulence, access to energy and new technologies is becoming especially critical.
According to the expert, in this context, deepening strategic cooperation between India , Russia and China is a tool for countering global challenges.
“In this regard, our cooperation is beneficial not only to New Delhi , Moscow and Beijing. It will also have a significant positive effect on the entire world, the entire global economy” said the expert.
