Russia counts on sanctions help from China as US warns Beijing | Russia-Ukraine war News

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A Russian minister says sanctions have prevented access to $300bn of Moscow’s $640bn gold, foreign exchange reserves.

Russia has said it is banking on China’s help to withstand the crippling economic sanctions placed by Western nations over the war in Ukraine as the United States warned Beijing not to provide that lifeline.

Russian Finance Minister Anton Siluanov said sanctions had deprived Moscow of access to $300bn of its $640bn in gold and foreign exchange reserves, and added that there was pressure on Beijing to shut off more.

“We have part of our gold and foreign exchange reserves in the Chinese currency, in yuan. And we see what pressure is being exerted by Western countries on China in order to limit mutual trade with China. Of course, there is pressure to limit access to those reserves,” he said on Sunday.

“But I think that our partnership with China will still allow us to maintain the cooperation that we have achieved, and not only maintain, but also increase it in an environment where Western markets are closing.”

People stand in line to withdraw U.S. dollars and Euros from an ATM in St. Petersburg, Russia, Friday, Feb. 25, 2022. Ordinary Russians faced the prospect of higher prices and crimped foreign travel as Western
People stand in line to withdraw US dollars and euros from an ATM in St Petersburg, Russia [File: Dmitri Lovetsky/AP Photo]

Western countries have imposed unprecedented sanctions on Russia’s corporate and financial system since it invaded Ukraine on February 24 in what it calls a special military operation.

Siluanov’s comments in a TV interview marked the clearest statement yet from Moscow that it will seek help from China to cushion the effect.

But US NSA Jake Sullivan said Washington has warned China not to provide it.

“We are communicating directly, privately to Beijing, that there will absolutely be consequences for large-scale sanctions, evasion efforts or support to Russia to backfill them,” Sullivan told CNN.

“We will not allow that to go forward and allow there to be a lifeline to Russia from these economic sanctions from any country, anywhere in the world,” added Sullivan, who is due to meet China’s top diplomat Yang Jiechi in Rome on Monday.

China-Russia ties

China has been one of the few countries to avoid criticising the Russians for their invasion of Ukraine. China’s Xi Jinping hosted Russian President Vladimir Putin for the opening of the Winter Olympics in Beijing just weeks before Russia launched the February 24 invasion.

During Putin’s visit to China last month, the two leaders issued a 5,000-word statement declaring “no limits” in the friendship between the two countries.

Chinese officials have also said Washington should not be able to complain about Russia’s actions because the US invaded Iraq under false pretences. The US claimed to have evidence Saddam Hussein was stockpiling weapons of mass destruction though none was ever found.

China is Russia’s top export market after the European Union. Russian exports to China were worth $79.3bn in 2021, with oil and gas accounting for 56 percent of that, according to China’s customs agency.

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