1. Home
  2. /
  3. Politics
  4. /
  5. Article
  6. /
  7. Putin’s Economic Ship Sinking...

Putin’s Economic Ship Sinking as Allies Distance Themselves Under Pressure of US Sanctions

As the U.S. intensifies its sanctions against Russia in response to the ongoing conflict in Ukraine, several of Russia’s key allies are beginning to distance themselves. 

This shift could have significant implications for Russia’s economy and its ability to circumvent the sanctions.

Major Chinese banks have recently halted transactions with Russian financial institutions that are under U.S. sanctions. 

This move signifies China’s growing concern over the repercussions of ignoring U.S. directives aimed at curbing Russia’s war efforts.

Credits: DepositPhotos

The Kremlin acknowledged this recently when it said that “unprecedented pressure from the United States and the European Union on the People’s Republic of China continues.”

“This, of course, creates certain problems, but cannot become an obstacle to the further development of our trade and economic relations [with China],” it added.

In the wake of U.S. sanctions, countries like Armenia and Kyrgyzstan have stopped accepting Russia’s Mir payment cards, complicating Moscow’s efforts to offer alternatives to Western financial systems like Visa and Mastercard.

Credits: DepositPhotos

Read More: Democrat Latino Group Unveils $57 Million Plan To Boost Votes

Historically a significant buyer of Russian oil, India has reportedly ceased its purchases of Russian premium crude. 

This development marks a substantial pivot in trade relations, further isolating Russia economically.

Russian oil companies are experiencing payment delays from nations such as China, Turkey, and the UAE due to fears of U.S. sanctions. 

These delays highlight the global financial community’s increasing wariness about engaging with sanctioned Russian entities.

Credits: DepositPhotos

The U.S. has systematically increased its economic sanctions against Russia, aiming to cut off funding for its war efforts. 

Recent measures include the potential direct sanctioning of foreign banks that facilitate significant transactions benefiting the Russian defense industry.

Several global banks have begun to exhibit caution, with some in the UAE and Turkey suspending accounts associated with Russian trade. 

However, major delays in payment processing continue to be reported, reflecting the complexities of compliance with U.S. sanctions.

Credits: DepositPhotos

Also Read: Trump Targets New York Judge’s Daughter in Wake of Gag Order

The Kremlin has admitted to facing challenges due to these sanctions but remains determined to maintain and expand its economic relations, particularly with China, despite the mounting international pressure.

Experts and think tanks like the Wilson Center suggest that the sanctions are effectively straining Russia’s economy. 

“Despite naysayers, the sanctions against Russia are working. Time and a firm application of pressure should see an even bigger impact on the Russian economy,” said the think tank.

Credits: DepositPhotos

These measures have forced a reevaluation of financial strategies within Russia and among its allies, indicating a possible shift in international relations dynamics.

As Russia approaches significant political milestones, the economic implications of continued sanctions and global shifts in alliance may play a critical role in shaping its domestic and international strategies. 

The effectiveness of sanctions continues to be a key factor in the geopolitical landscape surrounding the Ukraine conflict.

Read Next: DeSantis Suspends Florida Commissioner for Stealing From a 96-Year-Old Woman

mm

Malik is a skilled writer with a passion for news and current events. With their keen eye for detail, they provide insightful perspectives on the latest happenings. Stay informed and engaged!