Russia Declines to Use Venezuela’s Petro Crypto Coin, Proposes to Help the Country Without it


Although Russia acknowledges the efforts that Venezuela has made to create Petro, an oil-backed coin, to deal with the U.S. sanctions and inflation, it has said that it’s not ready to use it in bilateral trade but would continue supporting Venezuela.

Russia Opts For Traditional Economic Reforms

To help Venezuela overcome its financial and economic crisis, the Russian Federation has recommended various strategies. A delegation from Russia visited Caracas last year on November, offering the South American ally a plan that would improve its economy.

Led by Sergei Storchak, Russia’s deputy minister of finance, government experts that visited Venezuela gave the country a list of measures that would rescue it from its woes, but the petro wasn’t part of it.

Key Strategies

The plan for economic recovery recommended by Russia comprised of five key strategies. According to The Belle, a Russian news outlet, the first was to offer all poor Venezuelan households unconditional basic income, which would be derived from withdrawing fuel subsidies that the government is currently paying.

The second one was to stop financing the budget deficit by printing new money. In August 2018, the government of Venezuela decided to delete five zeros in a bid to strengthen its national currency, but it ended up losing its value to the U.S. dollar by a cool 95%.

According to the Russian press, the country would even help Venezuela by giving them 600,000 tons of grain and invest $5 in its oil sector. However, it clearly stated that it would not accept the petro as a unit for their bilateral trade.

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