Avatar

With half-frozen foreign exchange and gold reserves, Russia



Reading time: 2 minutes

Russia announced on Sunday that it was relying on China’s aid to deal with the economic consequences of Western sanctions, which appeared to have frozen nearly half of Russia’s gold and foreign exchange reserves, according to Russian Finance Minister. Anton Siluanov. The Russian official also said that Russia will strengthen cooperation in trade with China, according to Reuters.

“We have some of our gold and foreign exchange reserves in Chinese yuan. And we see what pressure Western countries are putting on China to limit reciprocal trade with China. Of course, there is pressure to limit access to these reserves, “Russian Finance Minister Anton Siluanov was quoted as saying by news.ro.

“But I believe that our partnership with China will continue to allow us to maintain the cooperation we have achieved and not only to maintain it, but also to grow it in an environment where Western markets are closing,” he said.

Western states have imposed unprecedented sanctions on Russia’s financial and corporate system following the February 24 invasion of Ukraine, which the Russian state calls a “special military operation.”

Siluanov’s statements in a televised interview are Moscow’s clearest statement to date that it will seek help from China to cushion the impact of sanctions.

The two countries have been strengthening their cooperation recently, as both have come under heavy pressure from the West due to human rights violations and other issues.

Russian President Vladimir Putin and Chinese President Xi Jinping met in Beijing on February 4th to announce a strategic partnership, which they say is to counter US influence. The two leaders described the partnership as a boundless friendship.

Sanctions on Russian reserves are one of the most drastic measures applied to Russia’s economy.

One month ago, Siluanov said that Russia would be able to withstand the sanctions imposed due to abundant reserves and even thought of offering Eurobonds to foreign investors once market volatility diminished.

The Russian official said on Sunday that the sanctions froze about $ 300 billion of the $ 640 billion that Russia had in its gold and foreign exchange reserves.

Siluanov also said that Russia will fulfill its state obligations and will pay rubles to the debt holders until the state reserves are thawed.