Despite successive packages of sanctions imposed on Russia by the European Union, Great Britain, the United States and other civilized countries of the world, the Kremlin continues to support its economy. This is mainly due to two powers.
The war in Ukraine has been going on for almost a year and a half. The Russian economy, despite successive packages of sanctions, embargoes on raw materials and other solutions applied since the first months of the conflict, is still functioning. All thanks to two forces that benefit from the situation.
China and India are saving the Russian economy
India was the first country to take a purely opportunistic approach to the geopolitical situation. Prime Minister Narendra Modi did not even try to hide the fact that the Asian superpower has increased its purchases of discounted Russian oil many times over. Rosneft’s special offer is beneficial to both parties. India has been guaranteeing itself very cheap oil for years, while Russia has a market for raw materials that no longer reach the economies of Western Europe. Moral considerations aside, this is ideal.
However, not only India supports the Russian economy. According to the latest calculations, the end of 2023 may become another record for trade between Russia and China.
New entry
As Russian Prime Minister Mikhail Mishustin said at the Shanghai Economic Forum, trade between Russia and China is expected to close at $200 billion by the end of 2023. This will be a new record in economic relations between the two countries.
The Chinese drop for the Russian economy is one of the reasons why the Kremlin can still pursue an aggressive policy towards Ukraine. Otherwise, Russia would have to rely on small economies importing raw materials. This would not be enough to carry out the current policy.
The Russian prime minister acknowledged that trade relations with China remain “an absolute priority” for the Kremlin.
Source: Wprost
I am George Brown, author at Daily News Hack. I mostly cover economy news and I have been doing this for quite some time now. I have a lot of experience in this field and I’m always looking for new opportunities to learn more.
