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In the light of the recent financial crisis in the USA, could the same thing happen now to the bonds issued by the American government, and could the country which has dominated the world for the last half century now enter history as a bankrupt state? And what can Russia do in the circumstances?
What can Russia do about this? At first sight, Russia's role in the international financial system does not seem very large. However, as a major exporter of hydrocarbons, her role in the world economy is actually very important. As the age of the dollar draws to a close, Russia will have to consider selling her oil and gas not in the devalued American currency, but instead in the euro used by most of her customers. It is surely unnatural for two geographical neighbours to do such large volumes of business using the currency of a distant and now ailing nation.
Russia opens online fuel bourse
Rosneft wants to sell half its oil through Russia's online fuel exchange which opened on Tuesday. It’s hoped the bourse will drive down energy prices as buyers compare offers in real time. The latest rates on diesel and jet fuel are now available to anyone with internet. Russia's energy supreme, First Deputy Prime Minister Igor Sechin, has been shown around the country's first online oil exchange. “This is a key way to make oil price formation transparent,” Sechin told RT. Rosneft says trading on the bourse will mean savings for consumers at the petrol station. “This removes intermediaries and will bring down the price of oil. We hope 50% of our trade will eventually go through these exchanges,” Rosneft’s President Sergey Bogdanchikov said. It's the world's first oil exchange not dollar-denominated. Prime Minister Vladimir Putin calls this the starting step to make the ruble an international reserve currency.