Almost 91 domestic credit institutions have been incorporated into the new Russian financial system, the analogous of SWIFT, an international banking network.
The new service, will allow Russian banks to communicate seamlessly through the Central Bank of Russia. It should be noted that Russia’s Central Bank initiated the development of the country’s own messaging system in response to repeated threats voiced by Moscow’s Western partners to disconnect Russia from SWIFT.
Much of the West’s power comes from our financial hegemony. Our ability to cut people off from loans, payments and so on. Since this new system is Russian only, it isn’t, right now, that big a deal.
But start connecting other countries to it, say China, Iran, India and so on, and it becomes a way of breaking financial blockades.
Include some calculable financial law (less of a challenge than it used to be as New York and London courts make increasingly punitive decisions), and start lending in Yuan (with which one can buy much of what one needs in the world, since the Chinese make so much of it), and you have a fully credible financial system.
The key is to get one major manufacturing country in. Most of the nations the West is punishing these days, financially, are oilarchies ( Venezuela, Iran, Argentina). They need the ability to buy manufactured goods.
The obvious country is China. If China agrees to go in, Western financial hegemony is broken. Japan could work; India could almost work, and Japan or India have a lot more to gain from it than it might seem (as we watch the Japanese economy implode.)
Even before then there are deals which can be cut. Say Greece wants to buy Russian oil. Russia can lend them Rubles, the use those rubles to buy Russian oil, in exchange Russia gets use of Greek ships and ports and access to the EU.
This is, then, in one sense, not a big deal. As long as its only Russia, it’s a defensive move of somewhat limited utility.
But if it expands beyond Russia, well then, it’s earth-shaking.
Get out the popcorn and watch it develop.