China pledges to help rebuilding Russian economy

22 december 2014 | 13:15

The economic assistance will be provided "within the capabilities of China."

Китай РФ КНР
China is going to help Russian economy.
Minister of Foreign Affairs of China Wang Yi announced that China would provide necessary assistance to Russia, if it is needed.

"If the Russian side needs, we will provide the necessary assistance within our capabilities" – the newspaper China Daily quotes the Minister.

At the same time, China believes that Russia has the capacity and wisdom to get out of the economic difficulties.

Head of Chinese diplomacy also added that China and Russia would always support and help each other.

Previously, in early December, the prime ministers of two countries agreed on new loans in frames of Russian major infrastructure projects' cooperation.

Li Jianmin, a researcher at the Chinese Academy of Social Sciences, whose opinion is cited by the China Daily, suggested that China's assistance would be provided through such mechanisms as the Shanghai Cooperation Organization and BRICS.

Read more: China blocks the BBC website for Hong Kong protests coverage

Meanwhile, Chinese scientists predict worsening of economic situation for Russia. "The most difficult time for the Russian economy has just begun, and the next three years will be marred by serious difficulties" – says Feng Yujun, a senior analyst of Russian Studies at the China Institutes of Contemporary International Relations.

On Monday, December 15, the exchange rate of the ruble against the currency basket showed the highest drop since the 1998 default time. Against this background, the Central Bank of Russia suddenly and dramatically increased the key rate on Monday night – from 10.5% to 17%, referring to a significant inflation and devaluation risks increase. Nevertheless, the Russian currency collapsed to 100 rubles for one euro and 80 rubles for a dollar on Tuesday, which is almost  a 1/3 devaluation.

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