Experts Weigh In: China Likely to Impose Conditions on Russian Loan

Written by Henrik Rothen

Apr.02 - 2024 8:41 PM CET

Photo: Wiki Commons
Photo: Wiki Commons
If Russia is to borrow money from China, it will be with certain conditions.

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The chinese publisher, NetEase, reports that Russia's request for a loan from China has sparked significant interest and speculation. Amidst economic sanctions imposed by the United States and its allies, Russia has found itself cut off from borrowing from Western banks. This is reported by AB News.

Chinese journalists have noted that while Russia has approached China for a loan, Beijing has yet to rush into a decision.

Finance Minister of Russia, Siluanov, has publicly stated that the countries are discussing loan possibilities, but no agreement has been reached yet.

This situation has led to widespread speculation about whether China will satisfy Russia's loan request. Most experts believe that China will agree to lend money to Russia, but with specific conditions in return.

"Russia wants to borrow money from China. We can borrow them, but the Russian Federation will have to provide collateral" the Chinese journalists note.

Beijing might demand concessions in oil, gas, and food supplies, and may also be interested in access to Russian ports in the Far East, aligning with the conditions laid out for the construction of the "Power of Siberia 2" pipeline.

The relationship between Russia and China has grown closer, but both nations prioritize their national interests, especially in financial matters. However, given the leadership of Vladimir Putin and Xi Jinping, both focused on national interests, a mutual understanding is expected, as has been the case in the past.