Delegate of Российская Федерация The Russian Federation

Position Paper

Russia, a nation with a storied past and unyielding spirit, exemplifies the
strength born from unity. Its rich history, from the expanse of Siberia to
the cultural heart of Moscow, reflects a commitment to tradition and
resilience. Russia's contributions to global culture and its unwavering
dedication to sovereignty and global stability are commendable.

In today's world, the dominance of a single superpower, like the United

States in the global economy, is detrimental to the well-being of nations.
We must strive for a multipolar world, fostering diverse perspectives and
a more balanced global order.

Agenda: Discussing The Status of the US Dollar as a global currency

Country’s policy on the agenda:

Our motherland and its people have suffered to great extents from the
disproportionate influence of the US dollar as the dominant global
currency. As time passes, we see more and more reasons to emphasize
on de-dollarization and uplift developing nations by minimizing their
reliance on a single currency.

With the BRICS nations expected to contribute over 50% of global GDP
by 2030, the long awaited shift in the global world order towards the
East is important.
The New Development Bank (NDB) and its associated liquidity
mechanism, the Contingent Reserve Arrangement (CRA), offer a
compelling alternative to traditional global financial institutions. The
NDB provides developing nations with access to substantial project
financing opportunities, typically amounting to billions of dollars, in
various currencies, promoting economic growth and infrastructure
development while mitigating currency risks. Furthermore, the CRA
offers a robust safety net with reserves totaling around $100 billion
in a mix of different currencies, reducing dependency on the traditional
IMF. This strategic approach not only bolsters financial stability but also
ensures diversification of foreign exchange reserves, enhancing global
economic resilience.

A Few notable disadvantages:

1) The IMF and World Bank, closely aligned with G7 nations,

leverage their influence to advance their own interests by
withholding funds unless certain biased bilateral relations and
conditions are embraced, which can be detrimental to developing
nations. (eg. Greece, 2015)

2) While the IMF and World Bank’s Structural Adjustment

Programme (SAP) was initiated with good intentions, it not only
fell short of accomplishing its objectives but also exacerbated
disparities in various dimensions, including class distinctions and
both inter and intra-state relations. Rather than bridging
divides, SAP ended up creating more significant rifts within the
country and further widening the gap that separated
developing nations from their more economically advanced
counterparts like in the case of Brazil in the 1990’s.

3) The U.S. Department of the Treasury, particularly the Office of

Foreign Assets Control (OFAC), has the authority to freeze
 assets and impose sanctions in accordance with U.S.
government policies, including foreign policy and national
security objectives. These sanctions can have a detrimental
impact on targeted countries' economies. For instance, in the case
of Russia, the imposition of sanctions by the U.S. and its allies has
significantly affected its economy. The sanctions have targeted
key sectors such as energy, finance, and defense, limiting access to
international markets, and contributing to economic challenges in
Russia, including currency devaluation and capital flight.
Additionally, these measures have disrupted foreign investment
and trade relationships, leading to substantial economic
repercussions.

4) Exchange rate risk is a significant concern for countries holding

substantial dollar reserves. The U.S. dollar's value exhibits
volatility, and this fluctuation poses a risk to the value of these
reserves. A striking example is the period between 2002 and 2008
when the U.S. dollar index, a measure of the dollar's strength
against major currencies, depreciated by roughly 40%. This
substantial decline had a profound impact on the worth of dollar-
denominated reserves, illustrating the vulnerability that nations
face when heavily reliant on the U.S. dollar in their foreign
exchange reserves.

A few possible solutions:

1) Russia is actively working on creating alternative payment systems

to simplify international transactions without depending on the
U.S. dollar-controlled SWIFT network. One of these alternatives is
the System for Transfer of Financial Messages (SPFS). By
developing such systems, Russia aims to reduce the worlds reliance
on U.S. financial infrastructure, making international transactions
more accessible and secure.
 2) BRICS and the developing nations can collectively embrace
cryptocurrencies, including Bitcoin, and leverage blockchain
and distributed ledger technology for international trade. This
approach has the potential to create a decentralized and non-
dollar-centric global financial ecosystem while simultaneously
fostering transparent and secure cross-border transactions,
reducing the need for dollar-denominated intermediaries.

*PRESS RELEASE*
Contact:
The Kremlin
Ministry of Foreign Affairs of the Russian Federation
+7 (495) 692-10-00

Russia to Attend G20 Summit, Putin to lead delegation

Moscow, 19th September – Russia is poised to take center stage at the

upcoming G20 summit, reaffirming its commitment to fostering
international economic cooperation and addressing pressing global
challenges. As a prominent member of the Group of Twenty (G20),
Russia will play a pivotal role in shaping discussions and policies that
aim to bolster economic resilience, trade sustainability, and inclusive
growth on the global stage.

This year's G20 summit, hosted by India, will bring together leaders
from the world's major economies to tackle critical issues facing the
international community. Russia's participation underscores its
dedication to collaborative solutions in an increasingly
interconnected world.
The Russian delegation will be headed by President Vladimir Putin,
who eagerly anticipates engaging and cooperating with global leaders,
with a particular focus on BRICS nations and other developing
countries, in pursuit of a redefined international order that meets
current global challenges. Accompanying President Putin will be
prominent figures such as Sergey Lavrov and other key members of the
Kremlin, enhancing the delegation's expertise and capacity to contribute
constructively to the summit's discussions.