Putin’s War Machine CUT OFF From China’s Yuan!

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September 9, 2024

Video Summary

Western sanctions against Chinese banks have finally begun to bite, and Russia is resorting to finger-pointing at exporters and importers to stop trading in Chinese yuan. But this is a sign that Russian institutions are starting to turn on each other. The Bank of Russia is now begging borrowers to stop asking for loans in yuan, which is a critical problem for Russia’s import and export transactions. This is because Russia relies heavily on China for dual-use items, including high-end optics and cameras, which can be used for both civilian and military purposes.

The issue is that China doesn’t want to accept payment in Russian rubles, which are essentially worthless. This has left Russian corporations struggling to acquire the yuan they need to make payments to Chinese companies. The Russian Central Bank has been loaning out yuan to meet the demand, but this has created a shortage of yuan in the country.

The problem is that this means Russia’s major banks have been charging exorbitant interest rates, with borrowing rates reaching as high as 200%. Despite this, traders are still begging for more yuan, and the Russian Central Bank is at a loss for what to do. China, meanwhile, is aware of Russia’s predicament and is likely to capitalize on it.

But here’s the thing: Russia may have found an unlikely ally in India. According to reports, Moscow has covertly drafted plans to purchase goods from India, potentially using rupees to trade for rubles in a closed payment system. This would allow Russia to access the electronic components it needs while avoiding the yuan shortage.

The implications are significant. Russia is essentially being squeezed by Western sanctions, and its economy is becoming increasingly reliant on China. But India, with its vast reserves of rupees, may be the key to unlocking Russia’s economic survival. It’s a sign that India is willing to cozy up to Russia, despite their rivalry with China, and may be looking to use Russia as a counterbalance to China’s growing influence in the region.

So, what’s next for Russia? It’s clear that China is pulling the strings, but India may be the key to unlocking Russia’s economic survival. The question is, at what cost? Will Russia be forced to compromise its sovereignty, or will it find a way to balance its relations with both China and the West? The answer lies in the complex web of international politics and trade. Stay tuned for more updates on this developing story.