Saudi Arabia, like a few other Gulf countries including the United Arab Emirates (UAE), has recently been authorized to join the BRICS. With one of its influential members, Russia, the Saudi Kingdom exchanged strategic issues, including the exit of the dollar. But not only.
Russia-Saudi Arabia meeting to talk about BRICS and exit from the dollar…
Saudi Crown Prince Mohammed bin Salman recently held an important meeting with Russian President Vladimir Putin. The event is significant because it highlights a pivotal moment in the global geopolitical landscape.
Essentially, the discussions between the two leaders, considered authoritarian, concerned the strategic initiative aimed at ending the domination of the American dollar in international trade.
This meeting crucial took place in the context of Saudi Arabia’s recent entry into the BRICS alliance. A decision which underlines the Arab country’s intention to diversify its global partnerships.
But this meeting also had the flavor 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 of the notable aspects of this collaboration is the promotion of local currencies in their bilateral trade. An approach linked to the overall objective of the BRICS, to reduce their dependence on the American dollar.
And oil…
This rare visit by Vladimir Putin to Saudi Arabia, his first since 2022, amplifies the importance of the meeting. Its geopolitical ramifications are far-reaching, with potential repercussions for the global economic order.
Indeed, in recent months, the BRICS have intensified their dedollarization program. This, by signaling a collective commitment to challenge the dominance of the greenback in international transactions.
One of the means to achieve this is oil. Arabia and Russia being among the largest producers of black gold in the world, it is obvious that this question was at the heart of the exchanges between bin Salman and Putin.
The meeting takes place in particular in a context where crude oil prices are losing value. This, despite efforts to reduce global oil supply undertaken in recent months to raise prices.
Ongoing efforts, exemplified 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 challenge the existing monetary status quo!
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