Sovereign Economy: Top Events of the Week

Chinese President Xi Jinping held talks at the Kremlin with Vladimir Putin. One of the topics of conversation was the expansion of economic cooperation. The Heads of State agreed on the principles of economic cooperation for the period up to 2030. They decided to strengthen Russia's partnership with China. The communiqué mentioned the collaboration in technology and innovation, energy, and creating a favourable business environment.

Russian Prime Minister Mikhail Mishustin addressed the State Duma with a report on the work of the government for 2022. The key point of his speech was devoted to unprecedented western sanctions. According to Mishustin, under the president's leadership, the Russian government solved the most complex issues in 2022.

Russia will continue the implementation of the decision to voluntarily reduce oil production by 500 thousand barrels per day until June 2023. According to the official position of the Kremlin, the reduction is related to the unwillingness to sell oil to operators who directly or indirectly comply with established EU and G7 pricing principles. In reality, the reduction in oil production is linked to the EU embargo on oil and petroleum products and Russia's inability to redistribute volumes freed up into other markets.

In order to revive the Russian economy, Putin has asked the police to reduce pressure on a business. At an extended meeting of the Interior Ministry Collegium, referring to the economic difficulties caused by Western sanctions, the President of Russia called on representatives of law enforcement agencies to monitor the justification for criminal cases against businesses. Such statements contradict previous statements that sanctions have benefited the Russian economy.   The US Department of Transportation has prepared a draft decree banning Chinese airlines that deliver passengers to the United States from flying through Russia. This decision was made after American Airlines called the White House to prohibit competitors from flying over Russia when travelling to the US.


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