Kathmandu— Pyotr Fradkov, chairman of Russia’s Promsvyazbank (PSB), asserts that international payments have evolved into a form of “new warfare,” with countries actively working to protect their trade from external pressures. This shift follows the escalation of the Ukraine conflict in 2022 and subsequent sanctions imposed by the US and EU, including the freezing of Russian sovereign assets abroad. Fradkov detailed Russia’s accelerated move away from Western financial dominance, noting that while a complete break isn't immediate, alternative payment systems are rapidly developing to address vulnerabilities inherent in relying on foreign infrastructure.

Shifting Away From Western Dominance

Russia has been accelerating its transition away from a financial system dominated by Western nations following the events of 2022 and the imposition of sanctions. These measures, including asset freezes, prompted Moscow to seek greater control over its international transactions. Fradkov explained that while Russia is attempting to reduce its reliance on the US dollar, simply switching currencies isn’t enough to guarantee financial independence.

Rise of National Payment Systems

Fradkov argues that a global trend toward national payment systems is emerging as countries seek to mitigate risks associated with foreign control. He cited Russia's A7 cross-border system and China’s CIPS network as examples of this growing movement, alongside the increasing use of stablecoins. According to Russian Prime Minister Mikhail Mishustin, national currencies already accounted for 85% of the country’s foreign trade settlements in the first ten months of 2025, with the ruble used in over half of those transactions.

Concerns About Stablecoin Dependence

While acknowledging the potential of stablecoins within a modern payment framework—alongside traditional banking and digital assets—Fradkov cautioned against assuming their long-term viability. He specifically warned that some stablecoins, like USDT which is pegged to the US dollar, remain tied to American economic and compliance structures, potentially creating new dependencies. Fradkov stressed the need for a competitive international system rather than simply reacting to existing restrictions.

Russia continues to develop its national payment infrastructure, including improvements to the Mir card system and legalization of cryptocurrency trading for foreign operations, as it seeks greater financial autonomy.

(With inputs from RT)

Originally published on abcnews.com.np.