Russia is however the largest oil producing nation on earth and since dollar hegemony is inextricably linked to petroleum trading thanks to the petrodollar arrangement, Russia is in a unique position to threaten dollar hegemony simply by trading oil and other fossil fuels for currencies other than dollars which they are doing and which, IMHO, is what actually underlies Obama’s ramped up anti-Putin/pro-Ukranian rhetoric. Many political figures have attempted to trade their oil for currencies other than dollars over the past decade or and they’re all conveniently dead now. Putin is a tougher nut however.
Russia is the second largest exporter of oil behind Saudi Arabia
Saudi Arabia is the largest producer of oil followed by the US and Russia. The US will soon surpass Saudi Arabia as the world's biggest producer of oil.
U.S. production of crude oil, along with liquids separated from natural gas, surpassed all other countries this year with daily output exceeding 11 million barrels in the first quarter, the bank said in a report today. The country became the world’s largest natural gas producer in 2010. The International Energy Agency said in June that the U.S. was the biggest producer of oil and natural gas liquids.
Many political figures have attempted to trade their oil for currencies other than dollars over the past decade or and they’re all conveniently dead now. Putin is a tougher nut however.
As much as we deride the state of our economy, it is still the place that most of the globe considers to be the safest place. And it is the largest economy that can absorb huge investments. I am not saying the dollar is invincible, but there is no other alternative yet.