After nearly three years of the Russia-Ukraine crisis, the United States and Western countries have adopted unprecedentedly severe economic blockade measures against Russia, such as freezing 80% of the Russian central bank's overseas assets, forcing the country to withdraw from SWIFT, a key node in the global financial system.
These measures have ruthlessly hit the Russian economy, plunging its finances into an extremely depleted predicament.
In the face of difficulties, Russia actively seeks external financial assistance, of which the yuan has become an important pillar. According to statistics, at the end of last year, the renminbi accounted for 26% of Russia's foreign exchange reserves, reflecting its increasing dependence on the renminbi.
Recently, Russian Finance Minister Siluanov revealed that he is on the issue of RMB lending with China, which may indicate Russia's intention to use China's financial support to meet the financial challenges under sanctions.
In this three-year Russia-Ukraine conflict, the economic sanctions imposed by the United States and the West have undoubtedly hit Russia hard, although official data show an economic growth of 36%, in fact, the financial pressure is huge.
Military spending has soared, from 421 billion in 2021 to an expected 1.4 trillion in 2024, while fiscal revenue in 2023 will only be 2,693 billion, which means that nearly half of the revenue must be used for war maintenance.
The reality shows that the economic situation in Russia is dire.
Russia's initiative to seek Chinese borrowing in the midst of a dire economic situation reveals the depth of its economic woes. Is China lending? For China, providing RMB loans can promote the internationalization of the renminbi and strengthen China's influence in the global economic map, and at the same time, it may win preferential policies from Russia in the fields of energy and food.
Proceeding from strategic interests, China has a reason to intervene. However, given the Russian one"Inert"China needs to ensure the return on this loan, such as accelerating cooperation on the Power of Siberia 2 gas pipeline project and opening ports such as Vladivostok in exchange for deeper trust and cooperation.
After all, loans always need to be guaranteed, and Russia, with its abundant resources and vast land, is enough to guarantee the safety of our country's loans and prevent the end of funds from going out of trouble.
After all, international relations are inherently mutually beneficial, not emotional. China needs to be clever in its geopolitical strategy, not only to maintain close cooperation with Russia, but also to avoid major economic risks in global cooperation, so as to achieve a win-win situation and stability.