Putin ordered the launch of the “Double Eagle project” because the US blocked a payment from the Russian embassy in Astana, Kazakhstan in March 2014.
The payment was directed to SOGAZ Insurance Group through SWIFT. This made Putin furious and he initiated the Double Eagle Project, an international money transferring system named after the Russian Double Eagle gold coin.
Moscow by night courtesy of Wikipedia
SWIFT (Society for Worldwide Interbank Financial Telecommunication) system is the global banking system’s postal system. SWIFT has more than 10,000 members in more than 200 countries, and handles more than 15 million messages daily.
SWIFT is based in Belgium, and subject to EU law. However, the U.S. government claims legal authority over all SWIFT transactions denominated in U.S dollars, even if those dollars never enter a U.S. bank account.
So when European banks used SWIFT to facilitate dollar dominated transactions between Iran and third parties, the U.S. fined those banks billions of dollars for violating U.S. sanctions, even though no money passed through the United States.
Russia launch competing money transfer system
When the United Kingdom, called for Russian banks to be ejected from SWIFT during the height of the Ukraine crisis, the Russian bear was alerted.
Late 2014, Russia announced that they will launch an alternative to SWIFT by May 2015. The new international money transfering system would nominate transactions in roubles, with conversion to and from U.S. dollars at either end.
The liberation of fiat money movements.
A Russian international money transfer system would be an alternative global economic and financial system beyond U.S. rules and Western sanctions.
Russia has joined the New Development Bank, an alternative to the International Monetary Fund and the World Bank. The participating countries, Russia, South Africa, China, India and Brazil, comprise more than 3 billion people, 41.4% of the world’s population, and account for more than 25% of global GDP.
China Merchants Bank now issues the world’s #2 credit card.
Russia and China have both built up their gold reserves.
A new trans-Atlantic cable to allow independent worldwide communications is under development.
Importers, exporters, and investors who are citizens of the EU and US are also likely to make use of the Double Eagle system , instead of SWIFT, when it suits them.