Payment scuffles between Russian companies and Chinese banks have escalated in recent weeks, with Chinese firms pulling back amid fear of sanctions.
  • Russia’s yuan reserves are nearly depleted due to Chinese banks’ fear of US sanctions.
  • Lenders have urged Russia’s central bank to address the yuan deficit, causing the ruble to drop.
  • China’s hesitance stems from US threats of secondary sanctions over Russia’s Ukraine war financing.
  • TrueStoryBob@lemmy.worldEnglish
    3·
    4 months ago

    Well, they can, but the cost will get more volatile… super oversimplified, it’s the difference between drinking at home booze you bought at wholesale prices and keeping a running tab with a local bar/pub. You’ll be subject to the bar and any price changes they (read: the currency markets) want to make.

    • finitebanjo@lemmy.worldEnglish
      1·
      4 months ago

      Theres no such thing as bartering between nations, in order to buy from them requires first selling something or having a creditor.

      I’m assuming they have nothing more to sell so they’ll just lose important wartime supplies and general goods access.