Russia shuns US dollar for trade as it joins Turkey in protest against Trump

RUSSIA has announced it will shun the US dollar for trade as the nation joined forces with Turkey in protest of punishing sanctions hiked by Donald Trump. Moscow declared it will decrease its holdings of US assets in retaliation against crippling tariffs imposed by US President Mr Trump on Russia and Turkey. Chillingly, Prime Minister Dmitry Medvedev said Russia would regard any US move to curb the activities of its banks as a “declaration of economic war” and added the country would retaliate.

Fresh sanctions against Russia has been threatened by President Trump who declared Moscow were responsible for the Salisbury Novichok nerve agent attack on former Russian spy Sergei Skripal, 66, and daughter Yulia, 33, back in March. Mr Siluanov said the new sanctions were “unpleasant but not fatal” and used a TV interview to shed light on the drop in Russia’s holdings of US government bonds restricted as a result of the tariffs.

But while admitting that sanctions would boost inflation in Russia as they hurt the rouble, Mr Siluanov said there were no plans to ban using the dollar in Russia. He said: “Of course, the government has no such plans. That would be a step to an impasse.” Russia’s rouble fell to a two-year low following the threat of sanctions which were forced upon Turkey.