MOSCOW, July 10. /TASS/. Putting forward initiatives to develop independent payment mechanisms and settlement hubs is a healthy process, Russian Foreign Minister Sergey Lavrov said on Monday.
He was speaking at a press conference following the results of the sixth round of the strategic dialogue between Russia and the Gulf Cooperation Council (GCC).
When asked by TASS to comment on a proposal from the head of VTB Andrey Kostin to create an alternative international depository settlement hub, which would be based in one of the countries of the Persian Gulf, Lavrov pointed to the positive implication of such initiatives.
"Experts assess the possibilities of creating a single currency, the possibility of creating settlement hubs differently but all experts who think ahead have a desire to help develop, if not a single currency then payment mechanisms that will protect all participants in the process from being abused by any external player. I believe that this is a healthy process," the top Russian diplomat said.
The minister also noted that there are a lot of similar initiatives now due to the fact that the dollar "has seriously discredited itself as the main reserve currency" and has proven its unreliability.
"It [the dollar] proved that the issuing country, if it suddenly has a desire to punish someone, will abuse its position without hesitation, therefore, of course, many countries are thinking about how to avoid such influence, how to reduce dependence on those who prove their biased selfish geopolitical position," Lavrov went on.
He noted that the VTB CEO’s proposal is not the only one.
"There were proposals from the President of Brazil [Luiz Inacio Lula da Silva], who suggested considering the possibility of a single currency for the countries of Latin America and the Caribbean. He also proposed not so long ago to discuss this issue as a whole as part of the BRICS summit, which will be held in August this year under the chairmanship of the Republic of South Africa. There are other ideas in this area as well," the Russian Foreign Minister recalled.
Earlier, the head of VTB Andrey Kostin proposed creating an alternative international depository settlement hub, which would be based in one of the Persian Gulf countries, taking into account the concentration of large capital in this region. The head of the Bank of Russia, Elvira Nabiullina, called the proposal productive and called for discussing specific aspects with the market and international partners.