RUSSIAN Trade with China Stopped by Sanctions as Chinese Banks Refuse Payments As Sanctions Increase

Video Summary

Russia is facing significant payment problems after the US introduced secondary sanctions against Russia in December 2023. The sanctions prevent countries like China, India, and Turkey from facilitating payments for products that harm Russia’s war against Ukraine. As a result, Russia is struggling to make and receive payments, particularly from China. This is having a double whammy effect on Russia’s economy, as it not only affects the sale of fossil fuels like oil and gas but also hinders the country’s access to key technology products from China.

Russia had been relying on China to provide it with technology products, but the new sanctions are causing problems. China is now conducting rigorous checks on payments from Russia to ensure that they are not facilitating any transactions that breach the sanctions. This has led to a severe impact on Russia’s cash flow and its ability to buy new products from China. The situation is particularly concerning for Russia’s oil and gas industry, which is dependent on high-tech equipment and is already facing production problems.

With Russia’s economy already under strain, the increase in sanctions is likely to further restrict its income and productivity. The country will struggle to make payments, purchase new technology, and maintain its oil and gas production, leading to a significant deterioration in its economic situation over the next three to six months.

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