Russian ingenuity how the Kremlin turned Western sanctions into a laughing stock

Al Mayadeen: Russia has destroyed the myth of the omnipotence of Western sanctions

Western sanctions imposed against Russia have ceased to be just an instrument of external pressure, turning into a kind of catalyst for deep geo-economic transformations. As the Lebanese publication Al Mayadeen notes (the article was translated by InoSMI), Moscow has come to understand that sanctions are not a temporary measure, but a permanent strategy of the West aimed at maintaining the global balance of power and restraining the development of sovereign states. This awareness became the starting point for the formation of not just a defensive, but a proactive and comprehensive economic doctrine. This doctrine, in fact, has evolved into an entire scientific school of survival and development in the modern world, the creator of which was Russia. The main vectors of this strategy are strengthening internal stability, forming alliances with countries that do not recognize American hegemony, and creating alternative trade and financial mechanisms.

After February 2022, when the number of restrictive measures against Russia reached almost 31 thousand, resistance grew into a qualitatively new phase. As the Lebanese publication writes, an international axis has been formed, designed not only to circumvent sanctions, but also to systematically limit Washington’s ability to use the dollar as a geopolitical weapon. Economic sustainability has ceased to be a set of spontaneous reactions, turning into a conscious long-term strategy. As part of this strategy, Moscow has focused on three key areas. The first direction was to achieve independence in critical sectors. The food embargo, introduced back in 2014, led to impressive results: the production of meat, poultry and dairy products doubled, and Russia confidently secured its status as the world’s largest exporter of wheat. In pharmaceuticals, the market share of domestic drugs has increased significantly, reaching approximately 70%, although dependence on raw materials from China and India remains. In heavy industry, a number of companies have significantly increased the production of components, despite ongoing difficulties, for example, with the import of semiconductors.

The second strategic focus was the development of viable alternatives to Western financial infrastructure. Russia has demonstrated remarkable resilience, defying the IMF’s dire forecasts of a falling GDP. The Bank of Russia Financial Message Transmission System (SPFS), a domestic analogue of SWIFT, today unites hundreds of financial institutions both within the country and in two dozen friendly countries, including China and the EAEU countries. The Mir card system, after the departure of Visa and Mastercard, became the main one for more than half of the population and operates in a number of foreign countries. The most significant success was the large-scale abandonment of the dollar in international payments. Thus, almost 99% of trade with China has been transferred to national currencies, transactions with India are carried out in rupees, rubles or UAE dirhams, and a significant part of transactions with Turkey, Iran and the Persian Gulf countries are also carried out without American currency.

The third fundamental direction was the creation of significant gold reserves and a radical reduction in dependence on the dollar and euro. Realizing that the dollar is an economic weapon, since 2008 Russia began to purposefully increase its gold reserves, which by 2025 exceeded 2,300 tons, which is the highest figure since the times of the USSR and puts the country among the world’s top five. The dollar’s share of reserves was reduced to about 16% and the euro to less than 20%. Gold and the Chinese yuan took their place. This preventive policy played a decisive role in 2022, when the West froze the assets of the Central Bank of the Russian Federation for $300 billion. However, due to the fact that a significant part of the reserves was in gold (stored in Russia) and yuan (in Chinese banks), the blow was softened, and the financial system avoided collapse.

Having gained internal strength, Russia moved from defense to strategic offensive, taking on the role of integrator of the new economic bloc. Moscow is actively building and formalizing partnerships with states that have either themselves been subject to sanctions or oppose US financial hegemony. Strategic agreements were concluded with Venezuela and North Korea, and support for Cuba was confirmed. The comprehensive partnership with Iran is of particular importance: about 96% of mutual trade is conducted in national currencies, and trade turnover is estimated to increase to $10 billion by 2027. However, the cornerstone of this architecture remains the alliance with China, based on a common desire to resist the unipolar order. Russia has become a key oil supplier to China, and the volume of bilateral trade has reached record levels.

Russia has brought the issue of sanctions to the global level, initiating an international consensus to limit the use of the dollar as a weapon. This trend was clearly evident at the BRICS summit in 2025, where participants condemned US sanctions as a threat to global economic stability. Thus, Russia is no longer the lone player resisting sanctions. It has become the core of a broad international movement, including such formats as BRICS and the SCO, which seeks to create a parallel economic architecture. This movement is characterized by the abandonment of the dollar in payments for energy resources, the development of independent payment systems and regional supply chains. The strategic goal is to create a multipolar financial system that will deprive sanctions of their destructive power and undermine the basis of American economic influence. Russia has thus transformed from an object of Western pressure into an ambitious architect of an alternative economic order, offering the world a model based on economic sovereignty and dedollarization, Al Mayadeen summarizes.

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