Moscow, Europe Brief News – The Western Allies imposed harsh sanctions on Russia resulting in the Russian currency experiencing a record low in value. After all, what is happening due to sanctions, the Kremlin is finding it difficult to keep the country’s economy running.
Former Treasury Department Officials and Sanctions Experts suggest that with all the sanctions being imposed on Russia, Putin is only left with an option to rely more than ever on energy sales and make country reserves of gold and Chinese currency in use.
The experts also mentioned that Putin will try to transfer funds from smaller banks and accounts of Elite families who are not on the radar of sanctions.
Russia will possibly deal in Cryptocurrency and be dependent on China for most of its economical situations.
John Smith, a former Director of the Treasury’s Financial Intelligence and Enforcement arm said “Right now, the biggest two avenues that Russia has are China and energy”.
The US and Western allies have imposed sanctions on Russia’s biggest bank and seized all the assets of the country’s Central Bank located outside the country.
The sanctions also include cutting off Russian banks from the SWIFT payment system to give Russia a financial shock. However, the officials have allowed Russia to supply its oil and natural gas to the rest of the world.
Russia to Depend On China For Financial Stability
There are high chances that Russia will bank on China to make up for lost supplies of goods and services that it usually receives from the west.
John Smith said “They are also betting that their enormous energy supplies will continue to be in demand, particularly during the cold winter. There is significantly more profit to be made from their energy if they can get it to market”.
Last month, Russia and China signed a 30-year deal that will enable Russia to supply gas to China. However, it will take at least 3 years to build the pipes that can carry gas from Russia to China.
China has announced that it will allow the import of wheat from all parts of Russia for the first time in history. This move has the significance of supporting Russia economically since the west has done everything to hit the Russian economy.
