February 12, 2026 | Putin Whacks Silver

Silver just had one of its steepest declines on record:

And this might be why:

(Economic Times) – Russia is actively considering a return to the US dollar settlement system as part of a potential economic partnership with President Donald Trump, according to a 2026 internal Kremlin memo reviewed by Bloomberg. The proposal outlines seven areas of economic alignment between the United States and Russia, centered on fossil fuels, natural gas, offshore oil, and critical raw materials.

At the core of the discussion is a dramatic policy reversal: Moscow’s possible re-entry into dollar-based trade after years of aggressive de-dollarization following Western sanctions and its removal from the SWIFT financial system in 2022. Since then, Russia has shifted nearly 90% of its trade with China and India into national currencies. Across BRICS, local currency settlement has climbed to roughly 60–67%, down from earlier volatility but far above pre-war levels.

The high-level document, circulated among senior Russian officials and reviewed by Bloomberg, outlines a “fossil-fuel first” strategy that directly challenges the global green energy transition. Under the proposed deal, the U.S. and Russia—the world’s two energy titans—would transition from rivals to partners. This “Energy Dominance” partnership focuses on joint investments in natural gas, offshore oil exploration, and a shared control over critical raw materials like palladium and nickel, which are essential for American tech and aerospace manufacturing.

Russia holds some of the world’s largest reserves of nickel, palladium, and titanium—critical for US aerospace and tech companies.The memo explicitly mentions benefits for US firms, likely in the form of rebuilding contracts, joint ventures in Siberian gas fields, and direct access to Russian markets.

If finalized, the deal would reshape global finance, strengthen the US dollar’s dominance in energy markets, and potentially weaken BRICS-led efforts to reduce reliance on the greenback. While this memo indicates high-level Kremlin thinking, it’s worth noting that “discussing” a return to the dollar and “executing” it are two different beasts. Significant hurdles remain, specifically regarding the lifting of existing sanctions and the domestic political optics in the US.

Not All That Surprising

Trump and Putin are natural allies when you think about it. They’re pragmatic in ways that look authoritarian. The US is the leading consumer of industrial commodities, while Russia is, at least potentially, a leading producer. Neither has much use for the idiots currently running Europe.

So it was only a matter of time before they began exploring their shared interests.

Does It Affect The Currency Crisis?

Gold and silver fell in response to this news because Russia and the rest of the BRICS coalition are seen as a threat to the dollar’s reserve currency status. Anything that hurts the dollar helps precious metals, which rise when the dollar falls. And to the extent that a partnership with Russia weakens the BRICS and thus helps the dollar, it might be bad for gold and silver.

But in the end, it won’t matter. Most of the developed world is far past the financial point of no return. Debt, and the interest on that debt, will force a monetary reset regardless of who the US allies with. And gold, silver, and most other commodities will soar along the way.

In any event, peace between the world’s nuclear superpowers is a fundamentally good thing. Here’s hoping!

John Rubino February 12th, 2026

Posted In: John Rubino Substack

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