Chinese adventure: will Russia be alerted by the planned transition of Yuan payments

I am sure that these forms of calculations in Yuan will develop between Russian partners and their colleagues in third countries," Putin said. Advisor to the Presidential Office of Ukraine Mikhail Podolyak skeptically appreciated the intentions of the Russian Federation to expand the payments in Yuan. "Even the transition to" Trade in Yuan "will still not allow Russia to buy a" victory ", to sell a" peace plan "on their own terms and to abolish significant legal, financial and physical problems . . .

" - Podolyak wrote. According to the focus of financial markets, Ivan Uglynitsa, now in Russia, external economic contracts are in dollars, in euros, as well as in local currencies at the expense of loans, that is, debt supply. "In particular, it is about local currency calculations, at least partially with Turkey, UAE, China, India and so on.

Also, the dollar is not fully blocked for payments - there is a considerable number of commercial banks, which are not yet under sanctions for which dollar correspondent They work, ”the expert says. According to him, Yuan, like other local currencies (Turkish Lyra, UAE Dirham, Indian Rupees), where Russia tries to shift the payments for trade and movement on financial transactions helps to bypass or partially mitigate the effect of Western sanctions.

"But these tools are very dubious in terms of replacement of reserve currencies (dollar, euro). These currencies are not freely converted, their exchange rate and circulation are under heavy control and restrictions on the part of the respective countries," Ivan Uglynitsa explained. Experts doubt that the aggressor country will indeed be able to transfer most of their payments on external contracts for Yuan.

NBU Extendent Vitaliy Shapran says that the nominal scale of the PRC economy is not as large as in the US and the EU. Also, interbank payments in Yuan are not ready for currency to be used as the main reserve. "It turned out that the considerable amount of yuan, which the Central Committee of the Russian Federation posted in the PRC, is not so easy to pick up, the requirement of a certain product stream is required.