The Moscow Stock Exchange suspended transactions in dollars and euros on Thursday June 13. This is the immediate consequence of the series of sanctions taken by the United States on the eve of the G7 meeting, to stifle the Russian war economy. The United States has threatened to cut off access to the dollar to anyone who passes through the Moscow Stock Exchange, accused of allowing the financing of the Russian military-industrial complex by foreign capital.
“Due to the introduction of restrictive measures by the United States against the Moscow Exchange Group, stock exchange transactions and settlements of instruments deliverable in US dollars and euros are suspended”, said the Central Bank of the Russian Federation. Exchanges must now take place over the counter, as is already the case for around 60% of transactions.
“Imagine a medieval town where the central market was closed. There would always be farmers who would like to sell food and villagers who would like to buy it. They would just have to meet in certain corners of the city, explained to Financial Times Janis Kluge, researcher at the German Institute for International and Security Affairs. This is what will happen in Russia. »
Cut Moscow off from China
According to Bloomberg, the question is whether and how transactions in yuan, China’s currency, which now accounts for more than half of Russia’s foreign currency trading, could be affected. Chinese banks are likely to gradually abandon their cooperation with the Russian national clearing house under pressure from the United States. This is the heart of the matter. These sanctions aim above all to cut Moscow off from China, accused of facilitating Vladimir Putin’s war effort.
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“We are particularly concerned by the scale of exports of dual-use goods [civil et militaire] from China. Russia continues to use sanctions evasion and circumvention networks to procure components such as microelectronics, which it uses to make weapons. Imports from China fill critical gaps in Russian defense to produce weapons and strengthen its military-industrial base »accuses, in a press release published Wednesday, the State Department (the American Department of Foreign Affairs), which also details the sanctions taken against seven Chinese entities suspected of supplying Russian military needs.
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