Russia is facing a growing economic crisis, with its currency plummeting and supplies from China becoming increasingly expensive. The US Treasury Department imposed new restrictions on over 40 Russian banks, including Gazprombank, on November 21st. This move will affect European buyers of Russian gas, forcing them to find alternative payment methods.
The sanctions, set to take full effect on December 20th, will make it difficult for companies to process transactions in dollars. This will lead to a time-consuming workaround, which may hinder Russia’s war effort.
This development comes as China prepares to strike back at the US, with President Xi Jinping setting out his tariff red lines. As the global economy becomes increasingly complex, the impact of these economic changes on international relations and geopolitics cannot be ignored.
Source: https://www.economist.com/finance-and-economics/2024/12/01/russias-plunging-currency-spells-trouble-for-its-war-effort