Cross-posted from: https://beehaw.org/post/12950703
As the threat of secondary sanctions deters Chinese banks from facilitating trade with Russia, companies are flocking to the one Russian bank with a Chinese branch and facing up to six months of delays, five people familiar with the matter said.
Russia’s largest banks rushed to open accounts in China following sweeping sanctions imposed by the United States and other Western nations on Russia’s financial system after Moscow sent its army into Ukraine in February 2022. By the end of that year, 90% of Russian banks had yuan accounts in Chinese banks.
I keep hearing ‘sanctions arent working’.
And every now and then I see things about them working; it’s almost like sanctions are a long game that don’t immediately show all the results in want within 3 months, and you need to keep them up long term. That said, of course when some don’t comply with those sanctions, it will permanently alter the landscape as the sanctioned try to work around them. Russia’s movement toward the Yuan, and reliance on China and N. Korea are not going to be undone anytime soon, if ever.
Pre-Ukrainian invasion, 1 USD was ~78 Russian Rubles. Now, that 1 USD is valued at 92 Rubles. After the start of the war, the Ruble lost a lot of value immediately, but appears to had gained value for a few months, and has steadily decreased in value as the sanctions drag on, and seem to have semi-stablized at a much lower value than going into the war. As a generalization, it appears looking back to 2003 (max on the chart i’m looking at), as Putin’s leadership drags on, the Ruble has steadily decreased in value (in 2003, it only took about 30 Ruble to value 1 USD). Looking at other major economic powers in the world is like looking at an inverse chart, where their currencies have increased in value against the USD consistently.
I keep hearing “Sanctions aren’t working, please, please, please remove them.” from Putin’s paid and unpaid trolls. It’s pretty obvious that they are effective - they just aren’t resulting in a sudden collapse that some people were unrealistically expecting.