The use of the dollar as a sanctions weapon undermines its position and creates prerequisites for the use of alternative instruments such as gold, cryptocurrencies and national currencies of other countries, said Igor Sechin, Chief Executive Officer of Rosneft, delivering a keynote speech at the Energy Panel of the XXVIII St. Petersburg International Economic Forum

In his speech Sechin drew attention to the fact that the causes and development of serious cataclysms and problems do not arise overnight, but are formed over time. As a result of abandoning the gold backing of the dollar, the US was able to endlessly, as it seemed to them, finance growing budget and trade deficits through unsecured issuance and debt accumulation. The global financial system based on the dollar monopoly needs additional stability".

Rosneft's CEO recalled the research of Belgian-American economist Robert Triffin, who proved in the eponymous dilemma he formulated in 1960 that the dollar's functioning as an international reserve currency creates a permanent deficit in the U.S. balance of payments. “Its increase, in turn, leads to an excess of dollars in the world, thus accumulating contradictions in the global financial system. The ill-advised use of the dollar as a sanctions weapon undermines its position and lays the groundwork for deploying alternative tools, such as gold, cryptocurrencies, and national currencies of other countries,” Igor Sechin said.

According to him, the downgrade of the credit rating and the uncertainty of forecasts of the US budget stability lead to the fact that US Treasury bonds are gradually losing their status of a “safe harbor”. Their place is taken by gold, the price of which, as a rule, rises on the eve of global crises".

Rosneft's CEO noted that according to the World Gold Council, over the past three years alone, the share of gold in the world's foreign exchange reserves has increased by 7% to over 20%, and according to the latest World Gold Council survey, 95% of the world's central banks plan to increase their gold reserves over the next 12 months.

"A clear indication of the significant increase in demand for gold is the rise in its relative value. Today, one ounce of gold can purchase approximately four times more oil, nine times more steel, and thirty-five times more wheat than it could in 1950. By the way, the governor of Florida signed a law in May to recognize gold and silver as legal tender in the State," he said.

Sechin also drew attention to the growing use of cryptocurrencies. "The volume of cryptocurrency trading has increased ten-fold to 18.5 trillion dollars over the last five years. Meanwhile, in New York State, a bill is being considered that would allow government institutions to accept payments in cryptocurrency," Igor Sechin said.

In addition, he noted the growing use of national currencies - yuan, dirham and Indian rupee in international trade. “The yuan's share in international settlements has already exceeded 6%, catching up with the euro,” Sechin said.

Speaking about the current situation with the erosion of confidence in the dollar due to sanctions Igor Sechin quoted the first lines from Homer's “Odyssey” written in the 8th century BC.

"Tell me, Muse, of the man of many devices, driven far astray after he had sacked the sacred citadel of Troy. Many were the men whose cities he saw and whose minds he learned, and many the woes he suffered in his heart upon the sea, seeking to win his own life and the return of his comrades. Yet even so he did not save his comrades, for all his desire, for through their own blind folly they perished…"

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Rosneft Oil Company
June 21, 2025