Russia's Economy in Jeopardy as Chinese Banks Withdraw and Western Sanctions Increase
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US (1 / 1) 26.03.2024 10:50 von Silia Symbolbild imago
Moscow - In view of increasing Western sanctions and the withdrawal of trade partners, Russia is facing economic challenges. President Vladimir Putin is increasingly reliant on the support of long-standing allies such as China. However, Chinese President Xi Jinping is also showing increased inability to withstand Western pressure, leaving Putin increasingly isolated.
Chinese Banks Withdraw
An event that led to a chain reaction was the withdrawal of several Chinese people's banks from payment transactions with Russia. Particularly hard hit was Putin's exit from the largest Chinese people's bank, the Industrial and Commercial Bank of China (ICBC). Other banks such as the Ping An Bank and the Bank of Ningbo followed this move and stopped accepting payments in Chinese currency from Russia. Despite efforts by Russia to continue financial sector business with China, negotiations have so far been unsuccessful. Borrowing in Chinese currency was not agreed upon.