Thursday, September 11, 2014

Russia's Response To European Capital Sanctions In One Word | Zero Hedge

While the West continues to press the "Russia is increasingly isolated" meme, it appears - as we noted ironically previously, that Vladimir Putin is finding plenty of friends... most notably China. While threats of 'asymmetric' retaliation over European sanctions may have been enough to worry Europe's leaders, the slew of news overnight regarding increased cooperation between China and Russia is likely more damaging to Western strategy (and egos).

Not so isolated...

NewImage

h/t @PersonOfAwesome

As overnight news shows... China and Russia are ramping up their cooperation...

First, as Reuters reports, Russia and China pledged on Tuesday to settle more bilateral trade in rouble and yuan and to enhance cooperation between banks, Russia's First Deputy Prime Minister Igor Shuvalov said, as Moscow seeks to cushion the effects of Western economic sanctions...

Russia's First Deputy Prime Minister Igor Shuvalov said told reporters in Beijing that he had agreed an economic cooperation pact with China's Vice Premier Zhang Gaoli that included boosting use of the rouble and yuan for trade transactions.

The pact also lets Russian banks set up accounts with Chinese banks, and makes provisions for Russian companies to seek loans from Chinese firms.

"We are not going to break old contracts, most of which were denominated in dollars," Shuvalov said through an interpreter.

"But, we're going to encourage companies from the two countries to settle more in local currencies, to avoid using a currency from a third country."

Complete story at - Russia's Response To European Capital Sanctions In One Word | Zero Hedge

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