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Latvia is presently building a metal fence, 90 kilometres long and 2.5 metres high, along its frontier with Russia. It will be finished before the end of the year, and will be extended in 2019 along more than 190 kilometres of the frontier, for a planned cost of 17 million Euros. A similar 135 kilometre fence is being built by Lithuania along its frontier with the Russian territory of Kaliningrad. Estonia has announced the impending construction of a wall, also along the frontier with Russia, 110 kilometres long and also 2.5 metres high. Planned cost – more than 70 million Euros, for which the Estonian government intends to ask for finance from the European Union.

Palestinians from the Gaza Strip have criticized an Israeli report on the country’s 2014 military operation against the besieged coastal enclave. The report was released by Israeli state comptroller Yosef Shapira on Tuesday. “I understand from the report that Gaza was merely the setting for an Israeli war game, with no objective but to destroy and murder indiscriminately,” said Basman Alashi, executive director of the El-Wafa Medical Rehabilitation and Specialized Surgery Hospital. The hospital, formerly located in the Shujaya neighborhood by the separation barrier with Israel east of Gaza City, was repeatedly shelled by Israeli forces during the 51-day offensive before it was evacuated under fire on July 17, 2014.

“The overall impression it leaves is this: ‘Netanyahu, You didn’t do a good job of destroying Gaza, do it better next time,’” Alashi said of the report. Others said the document contained useful information about Israel’s behavior during the offensive, even if its conclusions remained incomplete. “The report shows that Israel follows a systematic policy of humiliating Palestinians, especially through careless targeting of civilians,” said Ramy Abdu, founder and chairman of the Euro-Mediterranean Human Rights Monitor. Abdu’s Geneva-based agency has conducted investigations of Israel’s military conduct, including an Oct. 30, 2014 report stating that its forces had “deliberately targeted locations with concentrations of civilians” during operations earlier that year. “What the report has failed to cover is to cite careless targeting of civilians as a consistent failure of the Israeli forces, with almost no serious actions to do something about it,” Abdu said in regard to the Israeli comptroller’s findings.

It also claimed the cabinet had not only failed to consider diplomatic alternatives to military action, but also to set any clear strategy concerning Gaza. Once the operation began, it said, Israeli forces largely failed to meet their objective of thwarting tunnels dug by Palestinian resistance groups, destroying only half of them over weeks of a bloody ground invasion that produced many casualties. The comptroller did not appear to consider the goals of an earlier military operation, launched by Israel in the West Bank on June 13, 2014. These goals were to weaken Hamas, obstruct an agreement by Hamas and Fatah to form a unity government across the West Bank and Gaza Strip and recover three young settlers captured by Palestinians.

As expected, Cyprus and the EU reached a new late-night bailout deal last night that will reduce the chance that Cyprus's financial system and economy will completely implode. The new deal is better than the last deal in one key respect: Deposits under 100,000 euros will be protected That's very important. Those deposits were ostensibly "insured." To seize them, the way the last bailout deal would have, would have been grossly unfair and would have set a truly alarming precedent. Now, small depositors in European banks can breathe more easily. At least in this case of gross malpractice on the part of reckless bank managers, their life savings have been preserved. Alas, the good news ends there.

Cyprus is considering a levy of about 25 percent on bank deposits over 100,000 euros ($130,000) in the island's largest local lender, Bank of Cyprus, Finance Minister Michael Sarris said on Saturday. Sarris told reporters that "significant progress" had been made in talks with officials from the European Union, European Central Bank and International Monetary Fund - the so-called 'troika' - and that the discussions may conclude on Saturday evening.

The "larger dysfunction," as you express it, arises out of a number of factors. The primary one, in my view, is a philosophical and psychological schizophrenia among the American people.

(Reuters) - Two former executives at an Icelandic bank which collapsed in the 2008 financial meltdown were sentenced to jail on Friday for fraud which led to a 53 million euro loss, in the first major trial of Icelandic bankers linked to the crisis.

Rory Cullinan runs the world’s worst bank from a fifth-floor office overlooking Liverpool Street station in London. His 400-person outfit doesn’t lend money or trade securities. Instead, it sells blown-out mortgages, busted loans and entire companies amassed by Royal Bank of Scotland Group before it collapsed in the global financial crash of 2008. On a Friday afternoon, Cullinan is savoring a new feeling in his life as a toxic-asset disposal specialist: hope that the worst is finally over. After four years of marathon dealmaking, Cullinan’s Non-Core Division has whacked a 258-billion-pound ($390 billion) financial junk pile down to 57 billion pounds and eased pressure on RBS’s balance sheet. That has been chief executive Stephen Hester’s top priority since the government saved RBS from insolvency beginning in late 2008 with a 45-billion-pound lifeline — the biggest bank bailout in history.

The RBS mess has pitted Chancellor of the Exchequer George Osborne, who continues to stand behind Hester’s turnaround plan, against Bank of England Governor Mervyn King, who says it is not working. King told the Parliamentary Commission on Banking Standards that the government should fully nationalize RBS, then split it up and re-privatize the “good” pieces of the bank to recoup what it can of the bailout.“We should simply accept the reality today that it is worth less than we thought and should find a way to get an RBS that can be useful to the U.K. economy,” said King, 65, who will retire June 30.

Hester has told investors and analysts that getting a grip on RBS has proven a far tougher task than he expected because the euro zone’s sovereign-debt crisis and two recessions in Britain have undermined the bank’s bedrock lending business. Hester has also been hit with misdeeds that took root before he arrived at the bank.In February, RBS agreed to pay a $612 million penalty to regulators and law enforcement officials in the United States and Britain to settle allegations that 21 of its traders had manipulated the London interbank offered rate, or Libor, from 2006 to 2010. Barclays paid a $453 million penalty in July to settle its Libor case, and UBS was fined $1.5 billion in December.

According to Research Analyst Gareth Berry at UBS, "We expect that the theme of capital flight out of the Eurozone will continue to run for some time in the wake of the Cyprus bailout." The immediate focus, of course, is on deposit flight but capital controls will be expected to do their job for now. Of course, the images of bank runs and deposit flight are powerful, but we expect capital flight in the form of investment outflows is even more pernicious. Deposit flight exposes funding gaps on a banking-sector level, but capital outflows, be they via portfolio flows or FDI reversals, tend to expose the funding gaps of an entire nation, a fact that emerging markets can strongly attest to. As timely data is still rather difficult to come by, we use our Equity Flow monitor from last week to see if asset managers are now liquidating underlying investments in the Eurozone, especially taking into account that our FX Flow Monitor has been showing such trends for several weeks.

Unsurprisingly, the Eurozone suffered the most out of all G10 markets we track, but the distribution of selling was even more troubling. Eurozone-based clients actually registered flat net flow - i.e. repatriation back to the Eurozone offsets their overseas interest. However, for non-Eurozone based investors it was one way: the US and UK both registered strong inflows last week but almost all of the buying came from their own clients leaving the Eurozone. "If past history is anything to go by, the Eurozone's funding gap may widen further and it's the real economy, beyond the banks, that will suffer." Berry warns.

One hundred and thirty-two companies reportedly had inside knowledge of Cyprus’ impending levy tax as they withdrew deposits worth US$916 million in the run-up to the bailout deal.

It’s getting hot in Luxembourg, a nation that’s something like Cyprus on steroids. Its population is smaller and its banking sector is bigger. If you thought it was risky for banks in Cyprus to have assets about eight times the national gross domestic product, then what is one to make of Luxembourg, where the multiple is nearly 23?Worryingly for Luxembourg, there’s a new idea afloat that European Union nations, even small ones, should take responsibility for saving banks operating within their borders, instead of falling back on the EU for help.

Big depositors at Cyprus' largest bank may be forced to accept losses of up to 60 percent, far more than initially estimated under the European rescue package to save the country from bankruptcy, officials said Saturday. Deposits of more than 100,000 euros ($128,000) at the Bank of Cyprus will lose 37.5 percent in money that will be converted into bank shares, according to a central bank statement. In a second raid on these accounts, depositors also could lose up to 22.5 percent more, depending on what experts determine is needed to prop up the bank's reserves. The experts will have 90 days to figure that out.

The remaining 40 percent of big deposits at the Bank of Cyprus will be "temporarily frozen for liquidity reasons," but continue to accrue existing levels of interest plus another 10 percent, the central bank said. The savings converted to bank shares would theoretically allow depositors to eventually recover their losses. But the shares now hold little value and it's uncertain when — if ever — the shares will regain a value equal to the depositors' losses.

The head of Al Nusrah Front, Abu Muhammad al Julani, has released an audio message addressing Russia’s role in the Syrian war. Julani depicts Russia as being “Eastern Crusaders,” calls for reprisal attacks inside Russia, says the jihadists should attack Shiite villages, and argues that groups fighting the Assad regime shouldn’t seek assistance from the West or countries throughout the region. He also offers bounties of several million Euros to anyone who kills Bashar al Assad or Hezbollah leader Hassan Nasrallah. Julani’s 21-minute audio message, which was released online yesterday, is entitled “The Russian Intervention – The Last Arrow.” It has been translated by the SITE Intelligence Group.

Julani urges the “mujahideen in the Caucasus to distract” Russia’s attention from the war in Syria whenever possible by killing Russians in their home country, including soldiers. “If the Russian soldier kills from the masses of [Syria], kill from their masses. And if they kill from our soldiers, kill from theirs,” Julani says, according to SITE. “One for one. We will not be the ones who begin.” The infighting between various factions must come to a stop, Julani argues, so that the jihadists can focus on “breaking” the “Eastern and Western Crusader campaigns.” And the jihadists should mobilize on “all the fronts” throughout Syria in response. “All must start a large battle on the most sensitive areas for the regime, and the battle must be escalated and the Nusayri [Shiite] villages in Latakia targeted.” Latakia is a coastal province that has long been a stronghold for the Assad family. “I call upon all the factions to gather the largest possible amount of shells and rockets and strike the Nusayri [Shiite] villages every day with hundreds of rockets, just as the cursed ones do in the cities and villages of the Sunnis,” Julani says, according to SITE. “Make them taste some of the torture of our people. If they leave the villages and cities of the Sunnis, we will leave them alone and will not attack, for he who treats others the same as he treats himself is not unjust.”

Here, Julani is likely discussing the Sunni jihadists’ strategy of attacking Shiite civilian areas in order to force the Assad regime to refrain from attacking predominately Sunni areas. Al Nusrah, Ahrar al Sham and other Sunni jihadist groups have employed this strategy throughout the year by, for example, attacking Shiite villages in northern Syria until Assad, Iranian forces, and Hezbollah lay off of areas in the south where Sunnis, including jihadists, are cornered. Jaysh al Fateh has effectively used this plan to free civilians and some fighters stationed in Zabadani, a small city close to the border with Lebanon. Julani warns other groups in Syria to avoid seeking assistance from “the Western states and the regional states,” saying it will only bring more “humiliation and shame.” Julani does not address this warning to any specific parties, but he could be referring to Al Nusrah’s ally, Ahrar al Sham, which receives assistance from Turkey and Qatar. Al Nusrah itself has likely received support from Gulf nations, Turkey and other actors at times. In fact, al Qaeda ideologues have explicitly condoned such arrangements, arguing that it can advance the jihadists’ cause. Al Qaeda has even said it is permissible on theological grounds to receive support from Iran, which is currently the Sunni jihadists’ foe in Syria and elsewhere. So, while Julani may openly decry this practice, it is one al Qaeda has repeatedly deemed to be acceptable.

Here's the US's exceptionalist promotion of "democracy" in action; Washington has recognized a coup d'etat in Ukraine that regime-changed a - for all its glaring faults - democratically elected government. And here is Russian President Vladimir Putin, already last year, talking about how Russia and China decided to trade in roubles and yuan, and stressing how Russia needs to quit the "excessive monopoly" of the US dollar. He had to be aware the Empire would strike back. Now there's more; Russian presidential adviser Sergey Glazyev <a href='http://asianmedia.com/GAAN/www/delivery/ck.php?n=a9473bc7&cb=%n' target='_blank'><img src='http://asianmedia.com/GAAN/www/delivery/avw.php?zoneid=36&cb=%n&n=a9473bc7&ct0=%c' border='0' alt='' ></a> told RIA Novosti, "Russia will abandon the US dollar as a reserve currency if the United States initiates sanctions against the Russian Federation." So the Empire struck back by giving "a little help" to regime change in the Ukraine. And Moscow counter-punched by taking control of Crimea in less than a day without firing a shot - with or without crack Spetsnaz brigades (UK-based think tanks say they are; Putin says they are not).

Putin's assessment of what happened in Ukraine is factually correct; "an anti-constitutional takeover and armed seizure of power". It's open to endless, mostly nasty debate whether the Kremlin overreacted or not. Considering the record of outright demonization of both Russia and Putin going on for years - and now reaching fever pitch - the Kremlin's swift reaction was quite measured. Putin applied Sun Tzu to the letter, and now plays the US against the EU. He has made it clear Moscow does not need to "invade" Ukraine. The 1997 Ukraine-Russia partition treaty specifically allows Russian troops in Crimea. And Russia after all is an active proponent of state sovereignty; it's under this principle that Moscow refuses a Western "intervention" in Syria. What he left the door open for is - oh cosmic irony of ironies - an American invention/intervention (and that, predictably, was undetectable by Western corporate media); the UN's R2P - "responsibility to protect" - in case the Western-aligned fascists and neo-nazis in Ukraine threaten Russians or Russian-speaking civilians with armed conflict. Samantha Power should be proud of herself.

The "West" once again has learned you don't mess with Russian intelligence, which in a nutshell preempted in Crimea a replica of the coup in Kiev, largely precipitated by UNA-UNSO - a shady, ultra-rightwing, crack paramilitary NATO-linked force using Ukraine as base, as exposed by William Engdahl. And Crimea was an even murkier operation, because those neo-nazis from Western Ukraine were in tandem with Tatar jihadis (the House of Saud will be heavily tempted to finance them from now on). The Kremlin is factually correct when pointing out that the coup was essentially conducted by fascists and ultra-right "nationalists" - Western code for neo-nazis. Svoboda ("Freedom") party political council member Yury Noyevy even admitted openly that using EU integration as a pretext "is a means to break our ties with Russia." Western corporate media always conveniently forgets that Svoboda - as well as the Right Sector fascists - follow in the steps of Galician fascist/terrorist Stepan Bandera, a notorious asset of a basket of "Western" intel agencies. Now Svoboda has managed to insert no less than six bigwigs as part of the new regime in Kiev.

Support it or oppose it, a coup d’état took place in Kiev after an EU-brokered agreement was signed by the Ukrainian government and the mainstream opposition on Feb. 21. The agreement called for power sharing between both sides through the formation of a national unity government and for an end to the opposition-led street protests in Kiev. President Viktor Yanukovych ordered the Ukrainian police and security forces to withdraw from their positions, and even earlier, he had made multiple concessions to the opposition leadership. Instead of keeping its end of the bargain, the Ukrainian mainstream opposition executed a coup through the use of violence by organized ultra-nationalist gangs, which some analysts have compared to stay-behinds or secretive militias that were created by NATO during the Cold War. These armed ultra-nationalist groups took over administrative bodies in Ukraine and fought until they managed to oust the Ukrainian government and opened the path for opposition leaders to take power on Feb. 25. The Ukrainian mainstream opposition used the EU-brokered agreement, which the Brussels-based European Commission deliberately refused to enforce, as a means of justifying the formation of a coup-imposed government.

In the absence of almost half the Ukrainian Verkhovna Rada, or Ukrainian Parliament, the opposition parties began to arbitrarily pass unconstitutional laws. They also unconstitutionally selected Oleksandr/Aleksandr Valentynovych Turchynov as the acting president of Ukraine before President Viktor Yanukovych was even impeached. Intimidation and violence were additionally used to secure the cooperation of any disagreeing parliamentarians or state officials in Kiev. Saying that the ultra-nationalists and fascists are marginal elements, the mainstream media networks in North America and the European Union have simply dismissed the armed ultra-nationalist groups involved in the coup that are presently integrated into the putsch regime running Kiev. The militant ultra-nationalists, however, are very influential and amassing power under the illegal premiership of Arseniy Yatsenyuk.  Yatsenyuk, himself, is from Yulia Tymoshenko’s notoriously corrupt All-Ukrainian Union Fatherland Party (Batkivshchyna) and essentially a U.S. and EU appointee. There is even a pre-coup leaked telephone interception, likely either recorded by the intelligence services of Russia or Ukraine, in which U.S. Assistant Secretary of State Victory Nuland says that Yatsenyuk will be appointed as the prime minister of the Ukrainian government that the U.S. is putting together.

It is unlikely that Yatsenyuk and the loosely-knit alliance of the governing parties that ran Ukraine under the Yushchenko-Tymoshenko governments, foreign-based Ukrainians, and the forces behind the Orange Revolution that form the Orangist camp which he belongs to could have gotten back into power in Ukraine without pressure, the use of force and foreign backing. Yatsenyuk was even threatened and booed by the Ukrainians gathered at Independence Square when it was announced that he would be appointed as the prime minister of the post-coup government. A vast segment of the protesters made it clear that Tymoshenko, Yatsenyuk’s party leader, was no alternative to the ousted President Viktor Yanukovych in their eyes, either, when it was announced that she wanted to run for prime minister. The Orangists do not have the support of a majority of the population, nor did they form the parliamentary majority in the Verkhovna Rada. Their Orangist president, Viktor Yushchenko, only got 5 percent of the vote in January 2010, in a show of no-confidence, whereas Viktor Yanukovych won the first and second rounds of the presidential elections in 2010. According to Victoria Nuland, the U.S. has also poured $5 billion into “democracy promotion” inside Ukraine. This is U.S. State Department doublespeak for politicized funding that Washington has sent to Ukraine to organize the Orange Revolution and its Euromaidan sequel or what can frankly be described as regime change.

Iceland’s government has announced that it will be writing off up to 24,000 euros ($32,600) of every household’s mortgage, fulfilling its election promise, despite overwhelming criticism from international financial institutions. The measure was introduced by the country’s prime minister, Sigmundur David Gunnlaugsson, the leader of the Progressive Party which won the late-April elections on a promise of household debt relief. According to the government’s website the household debt will be reduced by 13 percent on average.  Citizens of Iceland have been suffering from debt since the 2008 financial crisis, which led to high borrowing costs after the collapse of the krona against other currencies.   “Currently, household debt is equivalent to 108 percent of GDP, which is high by international comparison,” highlighted a government statement, according to AFP. "The action will boost household disposable income and encourage savings.” The government said that the debt relief will begin by mid-2014 and according to estimates the measure is set to cost $1.2 billion in total. It will be spread out over four years. 

The financing plan for the program has not yet been laid out. However, Gunnlaugsson has promised that public finances will not be put at risk. It was initially proposed that the foreign creditors of Icelandic banks would pay for the measure. International organizations have confronted the idea with criticism. The International Monetary Fund (IMF) and the Organization for Economic Cooperation and Development (OECD) have advised against it, citing economic concerns. Iceland has “little fiscal space for additional household debt relief” according to the IMF, while the OECD stated that Iceland should limit its mortgage relief to low-income households. In the meantime, ratings service, Standard & Poor's, cut back on its outlook for Iceland's long-term credit rating to negative from stable, stating that the economic measure could affect the confidence of foreign investors if it ends up being paid for by the existing creditors of Icelandic banks.

Germany will send its top intelligence chiefs to Washington next week to seek answers from the White House on allegations that U.S. security officials tapped the mobile phone of Chancellor Angela Merkel.

Berlin will dispatch the heads of its foreign intelligence agency BND and of its domestic counterpart, the BfV. Merkel's chief of staff Ronald Pofalla, who is responsible for the intelligence services, may also join them.

German Chancellor Angela Merkel demanded on Thursday that the United States strike a "no-spying" agreement with Berlin and Paris by the end of the year, saying alleged espionage against two of Washington's closest EU allies had to be stopped. Speaking after talks with EU leaders that were dominated by allegations that the U.S. National Security Agency had accessed tens of thousands of French phone records and monitored Merkel's private mobile phone, the chancellor said she wanted action from President Barack Obama, not just apologetic words. Germany and France would seek a "mutual understanding" with the United States on cooperation between their intelligence agencies, and other EU member states could eventually take part. "That means a framework for cooperation between the relevant (intelligence) services. Germany and France have taken the initiative and other member states will join," she said.

It has been a while since both Ukraine, and the ongoing Russian response to western sanctions (which set off the great Eurasian axis in motion, pushing China and Russia close together, and accelerating the "Holy Grail" gas deal between the two countries) have made headlines. It is still not clear just why the western media dropped Ukraine coverage like a hot potato, especially since the civil war in Ukraine's Donbas continues to rage and claim dozens of casualties on both sides. Perhaps the audience has simply gotten tired of hearing about mixed chess/checkers game between Putin vs Obama, and instead has reverted to reading the propaganda surrounding just as deadly events in the third war of Iraq in as many decades. However, "out of sight" may be just what Russia's political elite wants. In fact, as VoR's  Valentin Mândr??escu reports, while the great US spin and distraction machine is focused elsewhere, Russia is already preparing for the next steps. Which brings us to Putin advisor Sergey Glazyev, the same person who in early March was the first to suggest Russia dump US bonds and abandon the dollar in retaliation to US sanctions, a strategy which worked because even as the Kremlin has retained control over Crimea, western sanctions have magically halted (and not only that, but as the Russian central bank just reported, the country's 2014 current account surplus may be as high as $35 billion, up from $33 billion in 2013, and a far cry from some fabricated "$200+ billion" in Russian capital outflows which Mario Draghi was warning about recently). Glazyev was also the person instrumental in pushing the Kremlin to approach China and force the nat gas deal with Beijing which took place not necessarily at the most beneficial terms for Russia.

It is this same Glazyev who published an article in Russian Argumenty Nedeli, in which he outlined a plan for "undermining the economic strength of the US" in order to force Washington to stop the civil war in Ukraine. Glazyev believes that the only way of making the US give up its plans on starting a new cold war is to crash the dollar system. As summarized by VoR, in his article, published by Argumenty Nedeli, Putin's economic aide and the mastermind behind the Eurasian Economic Union, argues that Washington is trying to provoke a Russian military intervention in Ukraine, using the junta in Kiev as bait. If fulfilled, the plan will give Washington a number of important benefits. Firstly, it will allow the US to introduce new sanctions against Russia, writing off Moscow's portfolio of US Treasury bills. More important is that a new wave of sanctions will create a situation in which Russian companies won't be able to service their debts to European banks. According to Glazyev, the so-called "third phase" of sanctions against Russia will be a tremendous cost for the European Union. The total estimated losses will be higher than 1 trillion euros. Such losses will severely hurt the European economy, making the US the sole "safe haven" in the world. Harsh sanctions against Russia will also displace Gazprom from the European energy market, leaving it wide open for the much more expensive LNG from the US.

Co-opting European countries in a new arms race and military operations against Russia will increase American political influence in Europe and will help the US force the European Union to accept the American version of the Transatlantic Trade and Investment Partnership, a trade agreement that will basically transform the EU into a big economic colony of the US. Glazyev believes that igniting a new war in Europe will only bring benefits for America and only problems for the European Union. Washington has repeatedly used global and regional wars for the benefit of  the American economy and now the White House is trying to use the civil war in Ukraine as a pretext to repeat the old trick. Glazyev's set of countermeasures specifically targets the core strength of the US war machine, i.e. the Fed's printing press. Putin's advisor proposes the creation of a "broad anti-dollar alliance" of countries willing and able to drop the dollar from their international trade. Members of the alliance would also refrain from keeping the currency reserves in dollar-denominated instruments. Glazyev advocates treating positions in dollar-denominated instruments like holdings of junk securities and believes that regulators should require full collateralization of such holdings. An anti-dollar coalition would be the first step for the creation of an anti-war coalition that can help stop the US' aggression.

Following the initial de-dollarization meeting, there has been a slew of anti-dollar moves around the world (including Gazprom's shift of 90% of its clients to non-dollar payments). However, on the heels of the "anti-dollar alliance" discussions yesterday, DW reports that China would start direct trade between the renminbi and the British pound on Thursday. China's Foreign Exchange Trade System (CFETS) confirmed Sterling and yuan would be directly swapped without using the US dollar as an intermediary.   Via DW, China's Foreign Exchange Trade System (CFETS) said Wednesday the Asian nation would start direct trade between the renminbi and the British pound on Thursday.   Sterling and yuan would be directly swapped without using the US dollar as an intermediary, the trade platform noted.   "The move will promote the bilateral trade and investment between China and the United Kingdom and facilitate the use of renminbi and pound in the cross-border trade settlement," CFETS commented.

Greek Prime Minister Alexis Tsipras will reportedly participate in the World Economic Forum of St. Petersburg after being invited by Russia on Monday to become the sixth member of the BRICS Development Bank. The Greek prime minister was invited to join the BRICS after a phone call conversation with Russian Finance Vice-minister Serguéi Storchak, RT reported. Tsipras has shown interest in the proposal and will join the BRICS countries in June at the forum in St. Petersburg to discuss the possibility. If Greece agrees to join the new Development Bank, the country would become its sixth member alongside Brazil, Russia, India, China and South Africa. The BRICS Development Bank is a new initiative that will help BRICS member states lessen their dependence on the IMF. The bank will have a $100 billion foreign currency reserve for the BRICS, which would protect national currencies from the volatility of global markets.

"A large part of the fund [International Monetary Fund] goes toward saving the euro and the national currencies of developed countries. Given that governance of the IMF is in the hands of western powers, there is little hope for assistance from the IMF in case of an emergency. That is why the currency reserve pool would come in very handy," said Russian ambassador-at-large Vadim Lukov. The currency reserve pool would ensure that, in the event of a financial emergency - such as a crisis in the banking system - the BRICS countries would no longer have to depend on the IMF. The BRICS group of nations includes five of the world's largest developing economies: Brazil, Russia, India, China and South Africa.

China’s Central Bank has started a global payment system which provides cross-border transactions in yuan. The China International Payment System (CIPS) intends to internationalize the yuan and challenge the US dollar's dominance.

CIPS will accept payments in cross-border trade, direct investments, financing and personal remittances. The system is open for operations 11 hours a day. The first CIPS transaction was completed by Standard Chartered Bank for Sweden's IKEA.Nineteen banks have been authorized to use CIPS; eight of them are Chinese subsidiaries of foreign banks, including Citi, Deutsche Bank, HSBC and ANZ.

Prior to launching CIPS international, transfers in Chinese currency could be carried out mostly through offshore clearing banks in Hong Kong, Singapore or London. While the procedure was slow and costly, the new system is expected to significantly reduce the cost and time for money transfers.China is also trying to reduce its reliance on the global transaction services organization SWIFT.