**Title: International Payments Viewed as 'New Warfare' by Russian Banking Leader**
In a recent interview, Pyotr Fradkov, chairman of Russia’s Promsvyazbank (PSB), described cross-border payments as a tool of "new warfare," reflecting a growing trend among nations to protect their international trade from external pressures. This perspective comes in the wake of heightened geopolitical tensions and significant sanctions imposed on Russia following the escalation of the Ukraine conflict in 2022.
Fradkov's comments, published in the Russian business daily RBK, highlight the ongoing transformation of the global financial landscape. He noted that the traditional Western-dominated financial systems are being challenged as countries seek alternatives to mitigate the impact of foreign sanctions and financial restrictions. The freezing of Moscow’s sovereign assets abroad has further accelerated Russia's efforts to transition away from reliance on Western financial infrastructures.
"The entire world has faced the reality that payments have become the most complicated topic in finance," Fradkov stated. He emphasized that this complexity has turned payments into a strategic tool, akin to warfare, as nations navigate the intricacies of international finance amid geopolitical strife.
While Russia is attempting to reduce its dependence on the US dollar, Fradkov cautioned that merely shifting to the ruble or digital assets does not eliminate reliance on foreign financial systems. He indicated that export transactions in rubles, projected to exceed 53% by 2025, still depend on compliance with external regulations, which can give foreign entities leverage over Russian financial activities.
In response to these vulnerabilities, Fradkov observed a global shift towards national payment systems. He pointed to the emergence of alternatives such as Russia’s state-backed A7 cross-border payment system and China’s Cross-Border Interbank Payment System (CIPS). The increasing adoption of stablecoins is also part of this trend, as countries explore new frameworks for international transactions.
Fradkov proposed that a modern payment system should integrate traditional banking with digital assets and stablecoins, aiming to create a competitive alternative in the international market. He emphasized the need for this new system to not only address current restrictions but also to be robust enough to withstand future challenges.
However, he also expressed caution regarding the long-term viability of stablecoins, suggesting that they should not be taken for granted as a permanent fixture in the financial landscape. He highlighted that certain stablecoins, like USDT, which is pegged to the US dollar, remain tied to the American economic and regulatory framework.
In a related development, Russian Prime Minister Mikhail Mishustin reported in January that national currencies made up 85% of the country’s foreign trade settlements during the first ten months of 2025, with the ruble being utilized in more than half of these transactions. This statistic underscores the ongoing shift towards domestic currencies in international trade, reflecting a broader trend among nations seeking to reduce their exposure to foreign financial systems.
Additionally, Russia has made strides in enhancing its Mir national card system and has recently legalized cryptocurrency trading for foreign operations, further diversifying its financial tools in the face of external pressures.
As the global financial landscape continues to evolve, Fradkov’s insights underscore the complexities and strategic implications of international payments in the context of geopolitical tensions. The banking leader’s remarks highlight a significant shift in how countries are approaching cross-border transactions, as they seek to establish more resilient and independent financial systems.