Putin’s consolidated and nationalized the Russian energy industry. Natural gas, oil, and uranium are all controlled by the state and overseen by an ultra loyal group of Putin’s childhood chums. These enterprises have never been more profitable or powerful.
As a result, Europe is now reliant on Russian natural gas and oil—a third of its fuel needs come through Putin’s pipelines. He can bend the EU to his will simply by twisting the valve shut. No need for military intervention. Crimea and the eastern Ukraine are his.
Putin’s next target? The US.
He cut a landmark deal to build pipelines and sell natural gas to China for the next 30 years. This fills Russia’s coffers, but more important, not a dime will transacted in US dollars. This is a direct threat to the current petrodollar system, in which the majority of the energy trade is priced in US dollars and sold in dollars.
Along with China, Putin delivered another crushing blow to the US dollar with the New Development Bank, which will make large strategic investments in developing nations in Africa, Latin America, and Asia through a non-dollar international payment clearing system.
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