After Russia sends a lot of cash to China and is willing to provide 25.2 million mu of land, things have made new progress
“The dollar is an era error in the modern world economy… The dollar is no longer a global reserve currency. It seems to be abnormal.” Russian media quoted Russian official Sergey Narishkin three weeks ago. In fact, due to the interaction between economy, trade and currency, with the continuous expansion of Sino-Russian economic and trade, the trend of local currency settlement is also expanding.
One of the new developments in the matter is that according to an official from the Chinese Embassy in Russia speaking on the forum”Promoting Sino-Russian-Chinese-European International Cooperation” on June 30th, China is the largest Russian agricultural food product The status of exporting countries continues to consolidate. Both sides have also made positive progress in mutual access to agricultural products. For example, poultry and dairy products continue to expand exports to China. In addition, Russian beef has also entered the Chinese market.
This means that Sino-Russian economic and trade cooperation is getting stronger and stronger, and Russian economic and trade cooperation is getting closer to China. With Russia’s vast land and sparse population, in the process of continuous development of the agricultural economy in recent years, Russian farmers have continuously gained more market share. As a result, the settlement trend of China and Russia’s local currency has provided merchants in both countries, including Russian farmers, to circumvent the dollar spread, maximize profits, and provide a monetary premise.
Be aware that prior to this, Russia had created a part of the dollar-free trading environment in the process of exporting crude oil to China, and Russia’s satellite news agency reported a few weeks ago that Russia and China inevitably The use of US dollars will be reduced and the transition to RMB and rubles will be made. The former Minister of Economic Development of Russia, Maxim Oreshkin, also said that”the work to achieve local currency settlement is being actively implemented.””At present, the local currency settlement in the bilateral trade between Russia and China occupies a certain share.””For example, the border trade between Russia and China is basically settled in local currency because it is very convenient.”
So, behind the localized settlement of China and Russia, the efforts of the two countries to de-dollarize are also inseparable. For example, according to an earlier report by the US financial website ZeroHedge, at present, countries such as China and India will also launch a world physical gold trading system at some point in the future, in order to bypass the gold trading systems priced in US dollars in New York and London. Thereby establishing a new gold currency standard in the East. The Russian Finance Minister confirmed this earlier, which means that China and Russia may break the dollar gold pricing power.
Not only that, Russia has also created a way to deliver large amounts of cash directly to China. A few months ago, the Russian Asia-Pacific Bank delivered 10 million rubles in cash to China’s Harbin Bank. Although the amount is not particularly large in terms of the ruble’s value, this batch has opened another trend in local currency cooperation. Immediately afterwards, Russian media said that Harbin Bank signed the”Cross-border Cross-border Transport Cooperation Agreement” with the Agricultural Bank of Russia and the Open Financial Group Bank. At present, it is known that the Bank of Kazakhstan has realized the cross-border transfer of 10 RMB cash notes to Russia with a total amount of 155 million yuan.
The above signs are only a microcosm of the process of Sino-Russian currency cooperation, which is for doing business in China Russian merchants provide the premise of directly receiving or clearing local currency, and also provide convenience for currency settlement for more Russian agricultural products to enter the Chinese market. This series of local currency cooperation initiatives will directly benefit businesses in both countries. This is not difficult to understand, another reason why Russian farmers are more willing to export more high-quality agricultural products to China.
At the same time, this is inseparable from the Russian economy’s spare no effort to attract Chinese investors and buyers, and increased cooperation. This can be explained by the multiple departments in Russia who have expressed their willingness to provide land resources to Chinese buyers to jointly develop agriculture and other projects. For example, the Russian state of Kostroma had provided Chinese investors with about 180,000 hectares of land for related agricultural projects such as dairy farming as early as 2017. By 2018, the Russian Far East Investment Attraction and Export Support Agency stated that we are willing to provide China with 1 million hectares of land for new agricultural investment projects, and we very much hope that Chinese companies or funds will come to the region. In addition, last year the Russian Far East will cooperate with Chinese investors on a soybean processing project, which requires 500,000 hectares of agricultural land in the Far East Federal District.
That is to say, according to what we currently know, Russia is willing to offer at least Chinese buyers Provide 1.68 million hectares, equivalent to 25.2 million mu of land, for agricultural investment projects. It is not difficult to understand why thousands of Russian”Chinese soybeans” arrived in China in the past two years. At present, Chinese enterprises have carried out cooperation in agriculture projects such as soybean cultivation, dairy processing, and soybean valley processing in Russia.
Coincidentally, according to the Russian Business Daily quoted the”Russia-China Far East Regional Cooperation Development Plan 2024″ document, Russia will also propose land and preferential financing for projects involving Chinese investors in agriculture , Also hope to attract Chinese companies to the Russian island of Far East. These signs all indicate that China and Russia have made many new advances in local currency settlement and in-depth cooperation in agriculture. (End)