China may support Russia on the financial market: expert

China is likely to open its international interbank payment system CIPS to Russia, China expert Robert Góralczyk told TVP World. He claims that the two autocratic regimes may support each other financially and economically without formally admitting the cooperation.

Mr Góralczyk said that China is so powerful financially, economically and militarily that there will be no opposition worldwide to its official or unofficial cooperation with Russia. Bejing may enable Putin’s regime to avoid sanctions imposed by the European Union, the United States and other countries.

In Góralczyk’s opinion even if the import of Russian oil is banned in Europe, the Kremlin may still indirectly benefit from the resource by selling it to China. In exchange, Chinese businesses are likely to pay Russia with money earned on export to Europe and the US, which would mean indirect financing for Russia’s invasion of Ukraine through Western money.

Russia is also likely to search for new markets for its oil and natural gas. The resources, if they are banned in Europe and US, can be sold to African, Asian and South American countries.

Góralczyk also highlighted the fact that Chinese companies own - directly or indirectly - some 25 percent of US companies. Chinese businesses export billions of euros worth of goods to Europe and many EU firms are dependent on Chinese supplies. Therefore it is highly unlikely that the US or EU oppose Russian-Chinese economic and financial cooperation by sanctioning Beijing.