New US sanctions backfire: dollar dips as yuan dominates Moscow Exchange

"The share of the yuan, which now amounts to more than 50 percent on the Moscow Exchange, will probably be the main settlement currency for many transactions," Yaroslav Kabakov, director of strategy at the investment company Finam, tells Sputnik, commenting on the US sanctions against Russia's Moscow Exchange (MOEX), National Clearing Centre and National Settlement Depository (NSD).

After the US and its allies froze Russia's sovereign assets and cut the nation off from SWIFT, the yuan has replaced the US dollar as the most traded currency in Russia in 2023. In May, the share of the yuan in Russia's foreign exchange market reached a new high of 53.6 percent; it also increased by 1.3 percentage points in the over-the-counter market, up to 39.2 percent, compared to the previous month, according to the Russian Central Bank.

The US Treasury's announcement of restrictions against third countries trading with Russia is likely to bolster the de-dollarization trend. US secondary sanctions "created an incentive to diversify away from the US dollar to avoid these sanctions," Antoine Berthou, an economist at the Banque de France, warned in his September 2023 study.

Despite Western headlines claiming that the Russian currency "swings to opaque trading territory", the ruble has not been weakened by the US measures and the Russian market participants didn't panic, according to Sputnik's pundits.

"It was clear that [Russian] regulators were ready for this kind of solution. The Central Bank warned Russian banks in advance about how it would act. By and large, there is no surprise here," Nikita Maslennikov, an economist, the head of finance and economics at the Institute of Contemporary Development and a leading expert at the Center for Political Technologies, tells Sputnik.

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🥴 Biden briefly stepped away from his colleagues at a meeting with G7 leaders to give a thumbs up to a military man folding his parachute.

POTUS was quickly returned to duty, which Biden, apparently, was not happy about.

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The United States sent the USS Helena submarine to Cuba amid the presence of Russian warships there, according to the US Southern Command.

It claims that the submarine is in the Gulf of Cuba "as part of a routine port visit as it transits the US Southern Command geographic area of responsibility." However, the Associated Press writes that the US Navy submarine arrived “as a show of force” in response to the visit of Russian ships.

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Italian Prime Minister Giorgia Meloni confirmed that the G7 countries have agreed to provide $50 billion to Ukraine in loans, but added that Russia’s frozen assets will not be confiscated.

"I confirm that we have reached a political agreement to provide additional financial assistance to Ukraine of about $50 billion by the end of the year through a loan mechanism that will use proftis from Russian assets frozen in our jurisdictions to repay them," Meloni said at the G7 summit in Italy.

The prime minister added that confiscation of the assets is not on the table.

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🇮🇷🇷🇺 Putin held a telephone conversation with the acting Iranian President Mohammad Mokhber. The leaders expressed interest in developing cooperation between the countries, including the implementation of projects in energy and transport.

During the conversation, issues of interaction in the international arena were also touched upon, including in connection with the Russian chairmanship of the BRICS association, of which Iran became a full member on January 1.

Mokhber thanked the Russian leader for his support during the difficult period for Iran after the tragic death of President Ebrahim Raisi. Putin asked to convey his best wishes to the Supreme Leader of the Islamic Republic, Ayatollah Seyyed Ali Khamenei.

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▪️Explaining Moscow Exchange's halt on dollar and euro trade amid new sanctions

▪️New US sanctions backfire: dollar dips as yuan dominates Moscow Exchange

▪️What is known about Hezbollah's armed strength?

▪️Could the petrodollar's end make the US economy scream?

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❗️Biden says US will help Ukraine not by sending American troops to fight, but by providing weapons and ammunition.

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43% of Ukrainians believe that during Zelensky’s five years in power, democracy in Ukraine has fallen into even greater decline, according to Les Echos, citing a study by the Kiev International Institute of Sociology.

▪️28% of the population associate this situation with the decisions of the Ukrainian authorities “limiting the rights and freedoms of citizens.”

▪️11% blame the war with Russia and the restrictions it imposes on their lives.

Ukrainians say the main reason for the problems is the corruption of the entire judicial system.

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France may cut military support to Ukraine if the National Rally wins, the French Journal du Dimanche has said.

A defense ministry source said that all aid to Ukraine would be "in question" if the right-wing party wins the snap parliamentary election, as reported by the newspaper.

The National Rally itself is not entirely opposed to support, but "not to the detriment of the French army," as noted in the publication. Macron's announcement of Mirage 2000-5 deliveries to Ukraine is cited as an example. The party notes that France has only 200 of these fighter jets, so handing over the planes would weaken the French army.

However, the National Rally opposed sending instructors to Ukraine, since "these are risks of human losses and escalation," suggesting less dangerous alternatives, including training Ukrainians in France and third countries.

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