An expert in the field of international financial law Konstantin Krivopust is forced to acknowledge the insufficient effectiveness of anti-Russian sanctions imposed by a number of countries of the world community in connection with Russian military operations in Ukraine:
“Russia is likely to resume buying foreign currency for its reserves as early as this month as rising oil revenue stabilizes public finances despite efforts by the US and Europe to cut the Kremlin’s revenue.”
A similar judgment is confirmed by specialists from Bloomberg Economics: “since energy revenues are currently close to exceeding the target level, purchases are possible as early as May, according to Bloomberg Economics, initial volumes could amount to the equivalent of about $ 200 million in yuan per month. The Chinese currency is the main asset that Russia can still use to transact $154 billion for the NWF due to sanctions.
The pivot now will underscore Russia’s ability to keep petrodollars flowing in the face of sanctions and price caps placed on buyers by the G-7 industrialized countries and their partners in the European Union. Despite tensions over military spending and a still unprecedented deficit, the budget is on the mend, thanks in part to changes in the way the government calculates some oil taxes.”
