Moscow, (Business News Report)|| Russia’s investment in China exceeds 140 billion dollars, said the South China Morning Post newspaper, published in Hong Kong.
The newspaper pointed out that the Russian government has huge financial assets invested in Chinese debt securities.
The South China Morning Post confirmed that the Russian Central Bank has investments in Chinese sovereign debt bonds estimated at $80 billion.
The government’s Russian Investment Fund holds Chinese bonds worth about $60 billion.
This figure is added to Russia’s gold investments that it maintains with China’s central bank, Bank of China.
These Russia’s investment in China represent about 25% of Russia’s total foreign reserves, estimated at $630 billion, about half of which have been frozen so far in Western countries.
Russian banks suffer greatly from a lack of dollar liquidity at the present time, and some of their branches have gone into bankruptcy, as the branch of Sberbank, the largest Russian bank in Austria, went bankrupt, according to the Wall Street Journal on Wednesday.
In the same regard, Katrina Buchholz, a financial analyst at the Statisa website, said that most of Russia’s gold reserves are located in China.
According to analyst Buchholz, about 13.8% of Russia’s gold reserves are held by the Chinese Central Bank. The Russian Central Bank’s gold reserves are equivalent to about 21.7% of the total Russian reserves.
This means that the Russian government maintains an estimated 33% of its gold and foreign exchange reserves in China, or about $200 billion.
However, he notes that this figure may be somewhat outdated, as Russia used part of these precautions in preparing for the military campaign against Ukraine.
Thus, perhaps these financial reserves accumulated in China, in yuan and gold, will remain outside the scope of the international financial and economic embargo against Russia.
According to analyst Katrina Buchholz, about 25% of the central bank’s reserves are located in France, Germany and Australia. These reserves were frozen in the wake of Western decisions on Monday.
China has so far refused to join the US-backed global campaign to isolate Russia from the global financial system and hit its economy after the invasion of Ukraine.