BRICS De-Dollarization Efforts at Risk as Russia Considers Return to US Dollar System

Russia's potential return to the US dollar system threatens to undermine the BRICS alliance's multi-year push for trade in local currencies. The Kremlin had emerged as the bloc's most vocal de-dollarization advocate after Western sanctions cut off its access to global financial markets following the 2022 Ukraine invasion.

A prospective trade deal with the TRUMP administration could force Moscow to abandon its ruble-based trade agreements with China and India - where nearly 90% of transactions currently bypass the dollar. Such reversal would leave BRICS' alternative payment infrastructure incomplete, potentially resetting progress for participating nations.

While China remains positioned to continue driving de-dollarization efforts independently, Russia's departure from the strategy exposes the initiative's fragility. The development reveals Moscow's currency pivot was born of necessity rather than ideological conviction, weakening the coalition's unified stance against dollar hegemony.