Moscow: According to Russian President Vladimir Putin, the US dollar and other Western currencies will inevitably lose their dominant position in international cross-border trade.

The head of state said that Moscow would work with its allies to create a safe system of international settlements that is independent of the dollar or the euro in his annual address to the Federal Assembly.

Putin claims that the US dollar and the euro are losing their dominance in international payments as a result of the Western states' current policies. He explained that Moscow is being pressured to reduce settlements in dollars and other Western currencies by Russia's former Western allies.

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Putin claimed in December that one-third of Russia's settlements were now made up of transactions made in the ruble, which had increased from zero at the beginning of 2022. He anticipated a rise in the use of domestic currencies in place of the US dollar and the euro in trade with foreign partners of Russia.

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When Western countries imposed the first sanctions against Moscow over the reunification of Crimea with Russia, which was formerly a part of Ukraine, the process of dedollarizing the Russian economy got under way back in 2014.

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Since the beginning of the military operation in Ukraine, sanctions have accelerated the process, especially after the US and its allies frozen more than $300 billion in Russian foreign exchange reserves and other assets.