Russia can switch to payments with India, China in national currencies crushing dollar amid sanctions – experts

Experts believe that the wish of the West to restrict Moscow’s cooperation with Brussels and Washington will play into the hands of the Russian economy. Wisdom and presence of mind are two components that will guarantee success for a new spiral of Russia’s cooperation with eastern countries. Also, this will allow us to counter-balance the risks that the European market is exposed to.

Russia has decided to develop cooperation with Asian countries. India, for example is our partner in issues of the military-industrial complex, in the high-tech segment. Cooperation with China is based on the raw materials sector, engineering, military technology. Recall that the Russian president’s visit is due in May.

Most likely, agreements on natural gas will be signed. Actually, bearing in mind that China will become the world’s largest economy in the near future, the development of the eastern vector will guarantee that a considerable part of extra profits and the growth of the home market will be generated in the South-East Asia.

Analysts believe that western sanctions could provide stronger positions to the developing countries, one of which is Russia itself. This is especially true of the high-tech sector, both in the regional and global market. In particular, Russia is practicing phase-out of imports.

European elites are rather short-sighted and oriented at controlling the markets, including the Russian economy, especially the raw materials sector. They never lost interest in that sector. For this reason, they will always be in conflict with Russia, especially after Russia announced the establishment of the Customs Union. Still, it is wrong to say that Russia is in conflict with the EU. On the contrary, Russians are extremely tired of the permanent economic crisis in the EU, the aggravation of that crisis and the austerity policy.

Speaking about the priorities of the eastern vector for Russia, experts point out that the establishment of new stock exchanges in South-East Asia is not far off and they can become serious competition for London or New York. And for Russia as a resource-dependent country this is one of the determining factors. The more so, because the Chinese economy grows fast, constantly increasing its consumption of oil and gas. Thus, in 1980 China consumed only 3% of the global oil production. Now it consumes 10%, leaving Japan behind. Only the US is still ahead. If this trend persists, China will inevitably start thinking about the establishment of an alternative oil and gas market.

Also, chances are that Russia, as one of the largest suppliers of oil and gas, will soon switch to mutual payments with India and China in the national currencies – roubles, yuans and rupees. In this case the dollar and the euro will gradually retire into the background.

Full article: Russia can switch to payments with India, China in national currencies crushing dollar amid sanctions – experts (The Voice of Russia)

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