At present, a "financial war" against Russia is raging around the world. The G7 imposed unprecedented economic sanctions on Russia, hundreds of billions of dollars of Russian overseas assets were frozen, the ruble exchange rate plummeted, and the stock market fluctuated.
Russia, on the cusp, has vowed to resolutely push back against Western sanctions. At this critical juncture, Russian President Vladimir Putin made an urgent visit to China, and the measures taken by China and Russia to jointly respond to the pressure of sanctions have attracted global attention.
A new geo-economic game is unfolding, and the world pattern may be reshaped as a result. Let's take a look at the front and back of this "financial war".
1. The seven countries have joined hands to freeze Russia's overseas assets, and the Russian economy has become even worse
On the eve of President Putin's urgent visit to China, the G7 offered a "financial nuclear weapon" against Russia.
The United States, the United Kingdom, Canada, Germany, France, Italy and Japan agreed to freeze most of the assets of Russia's central bank and sovereign wealth funds in the West, totaling up to $630 billion.
This action is like a heavy punch, hitting the "life" of the Russian economy.
Faced with the predicament in front of her, the head of the Central Bank of Russia, Nabiullina, could not help but fall into deep thought. As the "ballast stone" of Russia's response to Western sanctions, foreign exchange reserves were originally her confidence.
When more than $60 billion in external reserves turned into "ice sculptures", this heroine had to shout: "We can't withdraw our money!" This move by Western countries to "draw wages from the bottom of the kettle" has caused a huge gap in Russia's economic defense line.
The Russian stock market is reeling under the weight of sanctions. The Moscow Exchange stock index plummeted by 30%, wiping off almost 2 trillion rubles from its market value, equivalent to the cost of more than 200 Su-57 fighter jets.
Quite a few Russian oligarchs have watched their wealth shrink. A wealthy Russian man, who did not want to be named, lamented: "I used to have a 'golden fleet', and now there is only a group of 'paper tigers' left." "
The sharp swing in the stock market reflected investors' concerns about the prospects of the Russian economy.
The sword of sanctions is also directed at Russia's native currency, the ruble. At one point, the ruble plummeted 30% against the dollar, hitting a record low. On the streets of Moscow, people lined up to buy foreign currency and gold to preserve their value.
A Russian housewife said helplessly: "My salary is still the same amount, but my real purchasing power has shrunk a lot.
It seems that this year I can only eat 'sanctions salad' to live. "The depreciation of the ruble has exacerbated inflationary pressures and weakened people's spending power.
The Russian economy has entered the "cold winter season". The International Monetary Fund predicts that Russia's GDP growth this year may fall from the original forecast of 2% to minus 5% due to sanctions.
A "frozen" Russian economy is gradually emerging in front of the world. The sword of Western sanctions has already brought painful pain, but the bigger test is yet to come.
How will Russia get out of this predicament from which "no one can recover"? The world will wait and see.
2. Russia has vowed to retaliate against Western sanctions, and China and Russia have joined hands to counter the pressure of sanctions
In the face of the "financial nuclear strike" by Western countries, Russia did not choose to back down, but vowed to let the sanctioners "taste the bitter fruit".
Kremlin spokesman Dmitry Peskov said harshly at a press conference: "If they freeze our assets, we will cut off their energy supply."
Let's see who can make it to the end!" Russia does have the "energy card" in its hands. 40% of Europe's natural gas and 25% of its oil come from Russia, and if the supply is cut off, the European economy will face the risk of "cardiac arrest".
President Putin also showed his cards. He signed a special decree requiring "unfriendly countries" to pay for energy in rubles, failing which supplies would be interrupted.
This is like a "salary draw from the bottom of the kettle", which puts Western countries in a dilemma. The energy minister of a European country said with a wry smile: "Are we going to violate the sanctions and pay in rubles, or are we going to face the risk of an economic 'shutdown'?"
This is really a multiple-choice question!" Russia's countermeasures have undoubtedly put the Western sanctions camp in jeopardy.
In this game of sanctions and counter-sanctions, the cooperation between China and Russia has attracted much attention.
A spokesperson for the Chinese Foreign Ministry has repeatedly expressed opposition to the weaponization of unilateral sanctions and called on all parties to resolve their differences through dialogue. At the same time, China and Russia have accelerated the pace of cooperation in the fields of energy and finance.
China has significantly increased its oil and gas imports from Russia, which has become the "ballast stone" of Russian energy exports.
The two sides also announced that they would fully use their own currencies in trade between the two countries to get rid of the "hegemony" of the US dollar. One economist commented: "Together, China and Russia will create an 'independent space' in the global monetary system to hedge against the impact of Western sanctions." "
On the eve of President Putin's visit to China, China and Russia issued a statement emphasizing the need to deepen strategic coordination and jointly address global challenges. The two heads of state also had an hour-long phone call to "warm up" the upcoming meeting.
A Kremlin spokesman revealed that the two leaders will discuss how to strengthen financial security cooperation and deal with the "long-arm jurisdiction" of Western sanctions.
Analysts pointed out that the cooperation between China and Russia will not only help resist the pressure of sanctions, but also reshape the political and economic map of the world. As one think-tank scholar put it: "The 'heart-to-heart lock' of Sino-Russian cooperation will leverage the 'lifting point' of the global economy." "
Russia, which is in adversity, is brewing a "Jedi counterattack" of a sanctions game with the support of China's "backing". How will this "financial war" drama be staged?
Will Russia be able to use China's strength to get out of the predicament and achieve "phoenix nirvana"? We will wait and see.
epilogue
The "financial war" between sanctions and counter-sanctions is still raging. Russia has suffered a heavy blow, but with the support of China, it is preparing a counterattack. China and Russia will work together to shake the global political and economic landscape.
When will this great power game come to an end, and who will win in the end? The world will wait and see.