Moscow and Beijing will surpass western sanctions imposed to hobble Russia, said Alexey Kalachev, International Center for Joint Initiatives head. The Kremlin's target between both partners is to earn $200 billion as the goal to be reached by 2024.
Unprecedented Western Sanctions on Russia
Extraordinary Western sanctions aimed at Russia have given Chinese firms the chance to increase their visibility in the Russian market, which they have taken full advantage of, said the head of the International Center for Joint Initiatives, Kalachev, reported RT.
He expressed his views at the 7th EEF in Vladivostok, saying that the crisis is a source of new chances and that these new possibilities are in the form of new businesses that can now enter the Russian market readily while trying to prove their trustworthiness and quality of products.
Furthermore, some companies are concerned about possible sanctions for doing business with Russia, but those interested say they are willing to set up shop in Russia, noted the Thread Times.
The organization is for the establishment to support cooperation among Moscow and Beijing firms under punitive measures.
Alexey Kalachev said his job is presently centered on establishing relationships with China in certain spheres such as agriculture, auto manufacturing, information system technology, and building, citing Good Word News.
Several cooperation agreements with Chinese companies have been signed this week at EEF, including a deal with China State Construction Engineering Corporation.
These contracts call for the building projects to be spread among several locations in Moscow and St. Petersburg by 2024. Deals also were struck with asset developer NFC and Sunny Machinery Factory.
Penalized Russian Bank Overrides the SWIFT
VTB, one of Russia's largest banks, is now the country's first lender to initiate money transfers to China in yuan, circumventing the Western-controlled worldwide financial messaging system SWIFT, per Fars New.
Andrey Kostin, CEO of VTB, explains why alternative payment systems are being developed to avoid SWIFT. According to one observation, the new reality is causing a widespread rejection of the use of the US dollar and the euro in international transactions.
It is the first Russian bank to launch an alternate solution to cross-border bank transfer service with China, with initiatives to increase fivefold the quantity of these money transfers within the following year.
According to the bank's press release, the maximum limit is set at 100 million rubles ($1.6 million), with a single transfer of funds worth 20 million rubles ($325,000). The institution also stated that it intends to begin lending in yuan and other non-Western currencies later this year.
Western countries penalized Russia's largest banks at the beginning of the Ukraine conflict by expelling them from SWIFT and blocking access to dollars and euros.
Instead of caving into western pressure, Russia strove to re-invent its financial infrastructure in cooperation with nations that haven't imposed sanctions that disappointed the Biden administration the most, rattling off illegal sanctions when it saw a great flop of punitive measures.
A great effort by Moscow and Beijing to use the sanctions as boosters to find ways to leave the failed western systems remark Alexey Kalachev.
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