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Hal Turner<\/p>\n
A source within the Bank of Russia says a new wave of Western sanctions causing the blockage of bank payments, including through countries that are considered\u00a0 “friendly” to Russia can lead to the\u00a0 DEATH of the Russian economy.\u00a0 Source also says “Russia will not be the only country to die . . . .”<\/p>\n
According to First Deputy Representative of the Bank of Russia Vladimir Chistyukhin, the United States is telling foreign countries their economy will be Sanctioned (and thereby destroyed) by the US, if they continue processing normal payments to and from Russia.<\/p>\n
According to Chistyukhin, it is necessary for Russia to solve payment problems as quickly as possible and not to abhor even exotic or outdated mechanisms.\u00a0 He went on to say “What seemed to us yesterday, unpopular — swaps, some clearing systems, the use of crypto — all needs to be tested, everything needs to be tried.”<\/p>\n
He went on to point out the reality that if there are no normal calculations for products on foreign economic activity, for Russia’s export and import-dependent country then\u00a0Russia is facing\u00a0 “it\u2019s destruction.”<\/strong><\/p>\n Since the beginning of winter, Russian companies have encountered problems in making payments \u2014 shortly after, as US President Joe Biden expanded the powers of the US Treasury and its Office of Foreign Asset Control (OFAC, allowing them allowing them to disconnect\u00a0any banks around the world from dollar payments\u00a0for processing payments to\/from Russia<\/p>\n Banks in Turkey and the United Arab Emirates \u2014 key hubs of parallel imports to Russia — began to block transactions.<\/p>\n Following the financial blockade, Chinese banks \u2014 the main buyer of Russian oil and the largest supplier of imported goods to the Russian market joined in halting the processing of payments.<\/p>\n By the end of spring, according to estimates by the Chong-yang Institute for Financial Research at the People’s University of China in Beijing,\u00a080% of settlements between Russia and China were suspended.\u00a0<\/strong>Hopes that the situation would radically improve after the visit of Russian President Vladimir Putin to China, were in vain.<\/p>\n Although Putin and Xi Jinping discussed the creation of an isolated network of Chinese banks that would settle with Russia and not be afraid of Western sanctions, its scale was much smaller than what the Russian side was counting on,<\/p>\n By the end of May, China started\u00a0 blocking banks of Kazakhstan.\u00a0 Prior to May the largest the Bank of China regularly handled Kazakhstan payments for sanctions products.<\/p>\n On June 12, the US Treasury added the Moscow Exchange and its key settlement structures (National Clearing Center and National Settlement Depository) onto the sanctions lists, after which exchange trading in the dollar, euros and Hong Kong dollars in Russia stopped.<\/p>\n At the same time, subsidiaries Sberbank VEB in China and India,\u00a0 VTB in China, India and Hong Kong, as well as three subsidiaries of the defense industrial bank \u2014 Chinese, Indian and Kyrgyz, came under sanctions.<\/p>\n In addition to sanctions against banks, the United States has expanded threatened VPK Russia with secondary measures up to disconnecting the bank from the global dollar system.<\/p>\n The US Sanctions which were only supposed to apply to “defense complex” firms in Russia,\u00a0 NOW refers to all companies included in the sanctions lists that are not even directly related to the production of military products.<\/p>\n