After Russia sought help from overseas, the International Monetary Fund and the World Bank became even more proactive.
At this point, the huge fiscal deficit had already deterred external investors, even though the International Monetary Fund and the World Bank had officially announced that they would discuss the specific details of cooperation with the Russian government.
However, their collaboration only caused a huge stir in the media before nothing more was said.
Chen Dong learned from Yulia that the difficulties in advancing cooperation between the International Monetary Fund and the World Bank and Russia were due to the fact that their aid to Russia was not free; their $10 billion in financial assistance to Russia was conditional.
This familiar operation didn't surprise Chen Dong at all.
"These shameless people, when the Federal Reserve and the World Bank came to H country before, they also brought restrictive conditions to discuss cooperation with H country."
When talking about this, Chen Dong felt somewhat regretful, "Country H was already undergoing financial reforms. If they could have weathered this period without external intervention, their banks would certainly be much more independent now."
Yulia comforted him, saying, "The political landscape is different in every country. China can accept the conditions of the Federal Reserve and the World Bank, but it's hard to say for Russia."
"Why would you say that?" Chen Dong asked curiously.
Yulia was silent for a while on the other end of the phone, then quickly explained, "I'm not sure what the other people in Russia think, but personally, I believe that if economic aid is given under the guise of aid, it cannot be attached to any other conditions."
“Many young people in Russia share my view that they don’t like seeing foreign foundations and organizations offering both money and fame.”
Chen Dong pondered for a moment and said, "So... whether Russia will accept the support from the IMF and the World Bank is still an unknown?"
Yulia denied this claim, saying, "I don't know."
This stumped Chen Dong: "Russia wants the money but doesn't want to fulfill the conditions set by the IMF and the World Bank, so how did they get this international aid funding?"
"That depends on how the higher-ups handle it." In Yulia's mind, although Russia's economy was sluggish, it still maintained its prestige as one of the five major powers. She knew that getting the Russian government to accept the conditions of the IMF and the World Bank would not be an easy task.
Each of Russia's industries has its own drawbacks. The military industry is too big to be controlled. Although it is very profitable, it has also required Russia to invest a lot of money.
The heavy industry is currently facing an upgrade and transformation. Ironically, the talent cultivated domestically does not value the domestic environment and instead follows in the footsteps of the United States, resulting in a severe talent gap in the heavy industry.
In the oil industry, Russia has two major customers, China and Europe, which allows it to sustain itself for a while.
However, if the Russian futures market is attacked by international hedge funds, then oil and mineral prices will certainly react immediately.
Whether this response is good or bad depends on the combined efforts of the authorities and overseas support.
However, what is readily apparent is that the ruble has depreciated, so correspondingly, the prices of domestic oil and minerals remain at a relatively high level compared to their previous purchasing power.
Rising oil and mineral prices will also increase the price of exports to Europe. Energy prices affect the costs of road transport and production, meaning that price changes will inevitably impact prices in Europe.
......
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