China is vigorously promoting financial cooperation with Russia, supporting it with central bank digital currency (CBDC) and participating in the M-Bridge project. This move allows Russia to effectively hedge the risks brought by US sanctions and further strengthen the economic ties between the two countries.

According to the latest reports, trade between Russia and China increased by 29% to $93 billion in the first half of 2024. The promotion of the digital RMB and participation in the M-Bridge project have accelerated transactions and reduced dependence on US dollar settlements.

The M-Bridge project, initiated by China, aims to build a multilateral platform for transactions using CBDC. Russia's participation in the project will enable it to circumvent financial restrictions imposed by Western countries and consolidate its position on the international stage.

The article is for reference only and does not constitute investment advice.