Cracks in Putin's partnership: trading partners are withdrawing

Cracks in Putin's partnership: trading partners are withdrawing

Russia's economy is going through a difficult phase as major trading partners such as China, India and Turkey consider withdrawing from business with Russia. Concerns about tougher sanctions due to the political situation have led to several Chinese banks stopping payment transactions with Russia. This measure has a direct impact on Russia's economy, as the Chinese currency Yuan plays a significant role for the country and there is a strong dependence on China. Russia's increasing isolation due to sanctions poses major challenges for President Putin.

International banks are also reacting to the growing sanctions as they fear being sanctioned by the US. President Biden has announced that he will punish banks that facilitate important transactions with Russia. This announcement has led to banks from Turkey and the United Arab Emirates also pulling out. The consequences of these developments are far-reaching and are putting further strain on Russia's economy.

It also shows that important partners in the oil business are also hesitating and turning away. India, a major trading partner, has made it clear that if sanctions are flagrantly violated, trade with Russia will be halted. The increasing demand for US oil supplies shows a shift in trade relations away from Russia and towards the US. Russia's economic future remains uncertain amid ongoing sanctions and the departure of key trading partners, posing a challenge for President Putin. The situation shows that while Russia may exude confidence to the outside world, economic concerns are growing and mean an uncertain future for the country.