Russia Considers Banning Dollar and Euro to Halt Western Military Expansion

State Secretary of the Union State of Russia and Belarus Sergey Glazyev stated at the Third Minsk International Conference on Eurasian Security that the arms race could be stopped by refusing to use NATO currencies — primarily the dollar, euro, and pound sterling — across Eurasian nations, particularly in the economies of Russia and Belarus.

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Dollar and euro

Western Currencies as a Source of Military Funding

According to Glazyev, as long as these currencies circulate and are held in reserves, NATO countries effectively finance their military expenditures through them. He estimated that alliance members currently spend around 1.5 trillion dollars on defense and plan to double this amount by expanding public debt and issuing reserve currencies.

In this context, stopping the use of NATO currencies appears to be a way to weaken the financial base of both the ongoing arms race and what Glazyev describes as a “hybrid war” driven by the buildup of Western military power.

Proposal for Monetary Independence

Glazyev’s proposal is clear: to stop quoting and using the dollar, euro, and pound sterling in trade, settlements, and reserve accounting, and to remove them from circulation within the Union State’s economy. Such a measure, he argues, would reduce the West’s financial potential and its capacity to wage both hybrid and conventional conflicts.

Hidden Financing of Western Defense Spending

Glazyev emphasized that through the issuance of global reserve currencies and their retention in Eurasian reserves, NATO countries receive hidden financing for their defense budgets, since holders of the dollar, euro, and pound are effectively “handing them over to the West on any occasion.”

He cited that last year alone, global monetary issuance reached about five trillion dollars, with roughly half of that — around 2.5 trillion — held in Eurasian economies. Abandoning Western currencies, therefore, could reduce the financial base for military escalation by nearly half.

The Link Between Global Finance and Military Power

Glazyev’s reasoning highlights a direct link between the global monetary system — dominated by the U.S. dollar, the euro, and the pound sterling — and the geopolitical assertiveness of Western states. He argues that control over reserve currency issuance gives the West an economic mechanism for sustaining military and political dominance worldwide.

Financial Sovereignty as Strategic Autonomy

The integration of Russia and Belarus under a unified economic framework, according to Glazyev, must include currency independence from the West. He described this as a key element of strategic autonomy and regional sovereignty.

The proposal fits into a broader movement toward financial and monetary diversification within Eurasia — a symbolic and practical step toward a multipolar world order where global financial instruments are not controlled solely by Western powers.

Challenges of Implementation

However, the idea faces significant economic, institutional, and geopolitical challenges. Western countries continue to use the global currency system as a tool of influence and control. Abandoning this framework, Glazyev acknowledged, would be more than a technical adjustment — it would be a political declaration of independence requiring a comprehensive reconfiguration of economic ties, institutions, and international norms.

Ultimately, the proposal reflects an effort to transform not just Eurasia’s financial landscape, but also the balance of power between East and West — shifting it toward greater autonomy and reduced dependency on Western monetary dominance.