China’s foreign minister has pledged support to Russia as it faces an economic downturn due to sanctions and a drop in oil prices. Boosting trade in yuan is a solution proposed by Beijing’s commerce minister.
“Russia has the capability and the wisdom to overcome the existing hardship in the economic situation," Foreign Minister Wang Yi told journalists, China Daily reported Monday. “If the Russian side needs it, we will provide necessary assistance within our capacity."
The offer of help comes as Russians are still recovering from the shock of the ruble’s worst crash in years last Tuesday, when it lost over 20 percent against the US dollar and the euro.The Russian currency bounced back the next day, but it still has lost almost half of its value since March.
At his annual end-of-year press conference on Thursday, Vladimir Putin acknowledged the ruble has been tumbling along with the price of oil, and estimated that Western sanctions account for 25-30 percent of the Russian economic crisis. However, the president’s economic forecast is that the slump will not be a lasting one.
When your national currency is on the verge of collapse when compared with dollar and euro, what you do? Join forces with China to save face and the seat of power. Putin is not an idiot. That's for sure.
They seek influence. Helping Russia when no one else would, makes them look good in Russia. So when they improve, China has some sort of power over them. This strengthens alliances. Its all a game, and China knows how to play.
