Add to this the BRICS who meet in July and will consolidate trade, coupled with reporting likely by end of July of a second quarter decline in they US economy. The makings of a perfect storm are brewing.
If Russia’s “pivot to Asia” results in Moscow and Beijing trading oil between them in a currency other than the dollar, that will represent a major change in how the global economy operates
- Russia is increasingly looking east to China as a trading partner — and that could mean an end to the dollar’s dominance as a petrocurrency
By Liam Halligan
24 May 2014
'The unipolar model of the world is over,” declared Vladimir Putin last week.
“The global picture has completely changed”.
The St Petersburg International Economic Forum was less well-attended than usual. During previous visits to this annual “Russian Davos”, now in its 18th year, I’ve regularly been mown down by American and West European CEOs, as they’ve purposefully stomped down carpet-tiled corridors, their retinue of aides and cameras in tow.
This year, while plenty of Western executives did make the annual trek to Russia’s beautiful second city, keen to sell more cars, soap powder and financial services in Europe’s most valuable consumer market, the corridors were safer. Many of the top names stayed away.
The sanctions imposed on Russia in response to events in Ukraine put Western business leaders under pressure. Fearing unsavoury headlines, and often responding to specific government requests, some of our best-known corporate pole-climbers gave “Putin’s vanity summit” a miss.