A fairytale for Donald: why Russia’s reported dollar talk is a tasty dish, but not meant to be eaten

If it's true, Moscow's message to Trump is about beautiful numbers, but empty plates.

On Thursday, one of America’s best known legacy news agencies reported that “The Kremlin has set out proposals that could see Russia embrace the dollar again as part of a wide-ranging economic partnership with the Trump administration, according to an internal Russian document reviewed by Bloomberg.”

“The high-level memo, which was drafted this year, details seven points where, in the Kremlin’s view, Russian and US economic interests could converge following a deal to end the war in Ukraine. It sees the two countries working together to champion fossil fuels over greener alternatives as well as joint investments in natural gas, offshore oil and critical raw materials plus windfalls for US companies,” reporter Alberto Nardelli continued.

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So what’s actually happening here? This reads like a fairytale for a man who likes beautiful stories. A president called Donald who enjoys big numbers and the promise of a place in the history books. Everything Bloomberg reports here sounds inflated, burnished, theatrically plausible and practically improbable.

After years of deliberately digging trenches away from the dollar system and building bridges with China (a rising superpower, with a long memory, that Moscow shares a gigantic border with) it strains any rational belief to think The Kremlin is suddenly preparing to march back because one administration in Washington might be receptive. Especially when Trump can’t even run for an another term. De-dollarisation was an expensive and stubbornly pursued slog. You don’t reverse something like that with a glossy memo and a firm handshake across a polished table. Unless you’re desperate or you’ve lost the plot.

What does make sense is the signalling. Float the vision and make a back-to-the-future offer without obligation. Keep the other side nodding along and massage their egos. Don’t forget to tell them their boss absolutely deserves a ‘Nobel (sic) Prize.’

The alleged document is a menu, not a meal. Something to pore over, but not something you’re meant to digest.

If Trump spends the coming months chewing on visions of Russian trillions, f he’s distracted, delaying harder choices and ducking deeper coordination with Western Europe, then the exercise has worked perfectly. There’ll be no economic reset required, just time bought.