The Russia-Ukraine war has intensified, and Russia is mired in external sanctions. The suppression by the United States and other countries has led to a decrease in Russia's business friends around the world, and foreign exchange is difficult. However, this natural resource powerhouse still has one more hole card - * export.
After the collapse of the Soviet Union, Russia inherited a huge military-industrial system, especially represented by S-400 and Su-35 fighters. This is not only due to the large-scale sale at low prices during the collapse of the Soviet Union, but also due to the strength of Russia's military industry. India, an old friend of the arms deal, bought 5 sets of S-400 air defense systems from Russia back in 2018.
India's tacit deal with Russia.
India shouted to Russia: "Your S-400 is cheaper than the American Patriot and easy to operate." Although we are relatively safe in South Asia, we are worried about the movements of our neighbors to the north. Help my brother fulfill his little wish, and my brother will be generous"So, Russia and India joined forces. For Russia, this is a way to earn foreign exchange, and for India, it is to counter China.
Despite the fact that the order was signed in 2018, in the context of the Russian-Ukrainian war, Russia was able to bypass the dollar settlement system and settle with India in its own currency. This avoids the problem of paying "seigniorage" to US dollars.
Seigniorage" behind the hegemony of the dollar.
Seigniorage "is the hallmark of the hegemonic system of the dollar." Imagine that your neighbor buys your products with the dollars he printed, only to find that the dollars in your hand have depreciated due to the over-issuance of the currency. You have to accept that you end up paying "seigniorage" to your neighbors in disguise.
Behind Russia's arms deal with India is the fate of Russia being kicked out of the "SWIFT" settlement system by the United States for embezzling a large number of overseas assets. If Russia continues to settle in dollars, it will continue to pay "seigniorage", which is unacceptable for Russia.
Russia's dilemma and breakout.
However, the situation is very changeable. After the 2020 border clash between China and India, India became relatively "honest" under pressure from China. Even at the instigation of the United States, India has only expressed its stance on China in words and has not dared to make any more radical moves militarily. In order to calm domestic sentiment, India has carried out a "de-sinicization" campaign in recent years, but this national sentiment is like a cloud of smoke and fleeting.
Russia's entry into Ukraine's Crimean peninsula in 2014 sparked fighting with Ukraine. The Russia-Ukraine war intensified as Russia entered the Ukra Donbas region in 2022. The prolongation of the war has led to a shortage of spare parts in the Russian military industry.
Problems posed by globalization.
Although Russia is a natural resource power, its industrial system is not as complete as that of its southern neighbor. In the era of globalization, in order to reduce costs, an industrial chain involves multiple countries. Once sanctioned, the rupture of the industrial chain is a matter of minutes.
Although Russia still has orders to be delivered to India, in the context of the Russian-Ukrainian war, Russia has found itself in short supply of armaments. The reason for the delay in deliveries may also be Russia's attrition in the war, which has left it unoccupied with other matters.
The complex entanglement of the Russian-Indian arms deal.
Russia's postponement of the delivery of S-400 and other ** arms to India has caused India's dissatisfaction and raised ** to Russia. For Russia, however, offending India may simply be the loss of an order, and offending its neighbor to the south is a significant matter. History tells us that offending all the "P5" will only be like the Libyan Kadazo, where the grass in the cemetery grows high.
Epilogue. Russia is in a complicated situation and is bogged down in a quagmire. **Export may become a way for it to break through, but it faces challenges such as globalization and the rupture of the military industrial chain. Russia's arms deal with India not only involves diplomatic relations, but also involves the survival and development of the country. In the unbeatable international competition, it is worth waiting to see whether Russia can skillfully deal with it.
This article profoundly captures the serious challenges and dilemmas that Russia is currently facing, especially in the context of the Russia-Ukraine war, where external sanctions and resource shortages have forced the natural resource powerhouse to find other ways to survive and develop. The article revolves around the possibility of a breakout of Russia, and provides an in-depth analysis of the arms deal between Russia and India.
First of all, the article gives readers a clearer understanding of Russia's predicament through vivid descriptions. Especially in the era of globalization, Russia's industrial system has become fragile due to its over-reliance on global industrial chains, which makes Russia even more unable to be self-sufficient in the face of sanctions. It also reflects the challenges that globalization poses to national economic security in some respects, as well as its importance for self-sufficiency.
Secondly, by explaining the concept of "seigniorage", the article cleverly points out the disadvantages of the hegemonic system of the dollar. This not only gives readers a deeper understanding of Russia's choice to bypass the dollar settlement system, but also raises questions about the global monetary system and the hegemony of the dollar. This is enlightening for the observation and reflection of the current international economic pattern.
Furthermore, the article provides a detailed analysis of the complexity of the Russian-Indian arms deal, not only looking at the deal from the perspective of Russia and India, but also revealing the geopolitical entanglements behind it. This in-depth analysis demonstrates the author's knowledge of international politics and armaments, giving the reader a more comprehensive understanding of this complex situation.
Finally, the article points out the complex situation and challenges facing Russia by summarizing, and leaves a thought-provoking question: can Russia skillfully deal with the unrival international competition?This kind of guiding question makes the reader have more room to think about the future direction and possible solutions after thinking about the article.
Overall, this article is informative, clear-cut, and provides readers with a comprehensive and profound analysis of Russia's current international situation.
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