A step towards the loss of Russian sovereignty: what consequences will new US sanctions have for the enemy Anzhelika Galesevich The United States announced the expansion of sanctions list against Russia, adding more than 30 individuals and more than 200 legal entities to it. Sanctions, in particular, were imposed on the National Clearing Center and the Moscow Exchange. Russia is grasping at its only lifeline – China. However, such cooperation will not save the occupiers, and conducting operations in yuan is generally a step towards the loss of Russian sovereignty. Economist, executive director of the Economic Discussion Club Oleg Pendzin told 24 Channel more about the consequences of new US sanctions. According to Pendzin, if in 2022, in parallel with the shutdown of SWIFT, freezing currency assets, and also imposed sanctions on the Moscow Exchange, the consequences would have been much greater. Over the course of 2 years of a full-scale war, Russia managed to redirect its main expert supplies to Beijing. In particular, more than 80% of Russian oil is sold to India and China. The Kremlin managed to redirect the lion's share of revenues into yuan. Therefore, the sanctions imposed on the National Clearing Center and the Moscow Exchange agitated Russians and shook the financial system. Because without the dollar, despite the respect for the Chinese yuan, it is impossible to survive. However, not as stunning as it could be with the simultaneous introduction of the three above-mentioned components. On the one hand, the Americans want to help Ukraine. On the other hand, they do not want the final death of Russia, they only seek to weaken it. After all, after the destruction, many nuclear states may arise on Russian territory, with which it will be necessary to negotiate separately. Apparently, it is easier to do this with one dictator, Vladimir Putin. The economist said that the currency exchange in Russia has existed since 1996. There is a financial market infrastructure, where there are banks, clearing companies, the regulator, the Central Bank of Russia, and, finally, a mechanism for determining the market rate. For example, how much the ruble costs in relation to the dollar. Buyers and sellers converge on the interbank currency exchange. There is a regulator who, based on the results of trading, sets a fair exchange rate within the limits of Russian realities, but a market one. The exchange also provided the opportunity to satisfy the demand of importers in full. However, the United States imposed sanctions on the Moscow Exchange and the National Clearing Center. Accordingly, there is no center that would form the market exchange rate of the dollar against the ruble. This does not mean that the importer will not buy the dollar, and the one who wants it will not sell it. At the moment in Russia, a dollar can be bought for more than 100 rubles, and in some places – 120 rubles. Prices are formed not on the basis of the entire Russian market, but on the connections between two banks. But you can sell a dollar for 75–80 rubles. We see a huge difference between buying and selling. What remains is a wild anarchic field. I am absolutely sure that the Central Bank of Russia will come up with something. After some certain time there will be some kind of alternative. Why? It is impossible to live without a dollar. All “gray” imports are financed in dollars. Definitely no one pays with the Turks using the Turkish lira. All are paid in euros or dollars. The situation is the same with the UAE,” noted Oleg Pendzin. Also, the dollar is the currency of the commodity markets. All non-sanctioned goods that Russia exports to Europe and the United States, in particular, Rosatom contracts and rare earth metals, are denominated in dollars. In any case, dollars will come to Russia for the sale of expert goods. And they, in turn, need to be sold, since salaries are paid in rubles. The Central Bank of Russia has already stated that Russians are not interested in the dollar. As if they have an alternative – the Chinese yuan. However, there is a caveat – this is a currency with limited convertibility. The occupiers will not be able to pay with Turkey, the UAE, India and other states in yuan. Such settlements with third countries are prohibited by the People's Bank of China. Also, according to Pendzin, the occupiers are not Chinese residents. A Russian company will not be able to easily buy any goods from China for yuan. You need to conclude an export contract with the Chinese, then register it with a Chinese bank. The contract is then sent to the People's Bank of China for approval. Any calculations in Beijing's export operations in national currency require an appropriate license. The more Russia gets into the yuan, the less Russia itself remains in Russia, says Oleg Pendzin. It was not out of nowhere that Xi Jinping demanded that buy gas at domestic Russian prices, which are an order of magnitude cheaper than export prices. This is an unequal export-import policy. At the moment, China is the Russians’ only gateway to dual-use goods and the elemental base from which missiles are made. Beijing understands this situation very well, has its own interest and takes advantage of it accordingly. Russia is a raw material base, a territory for accommodating a huge number of Chinese. Although no one formally claims any territories. The total number of Chinese citizens in the Far East significantly exceeds the number of people with Russian passports. Therefore “yuanization” of the Russian economy is another step towards the loss of Russia's sovereignty.
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A step towards the loss of Russian sovereignty: what consequences will new US sanctions have for the enemy?
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