Russia proposes Argentina to strengthen economic ties despite sanctions

Ambassador of the Russian Federation to Argentina, Dmitry Feoktistov, invited Argentina to strengthen economic and commercial cooperation with Moscow despite the sanctions imposed on the 137th anniversary of establishing diplomatic relations between the two countries.

In the text sent to the authorities of the South American country, the ambassador recalled that Oct. 22 marks the anniversary of establishing diplomatic relations between Russia and Argentina.

An essential aspect of these relations is part of a comprehensive strategic partnership in trade and economic exchange, Feoktístov stressed.

The trade balance between Argentina and Russia amounted to US$1.3 billion in 2021, but “today there is some uncertainty in this area due to the attempts of the United States and the EU [European Union] to isolate Russia from its external partners” the diplomat acknowledged.

“The pressure on our country is unprecedented; the largest industrial enterprises and entire sectors of the national economy have been sanctioned,” while “major banks have been prevented from trading with the dollar and the euro” and “a significant part of Russia’s gold and foreign exchange reserves have been frozen,” he said.

SANCTIONS

The withdrawal of Western companies from Russia resulted in US$60 billion in losses.

That was compounded by an energy crisis that forced them to turn to coal and oil and abandon their carbon neutrality goals.

Such penalties “further undermine the credibility of the dollar and the euro,” he said.

“As a result, the current crisis will lead to the formation of a new global financial order based not on fiat money but commodity currencies, the value economy, and real assets,” he said.

In this sense, the U.S. and the EU are “destroying the foundations on which they have built their global dominance and showing that the services of Western capital come with significant risks.”

In parallel, “exports of various types of machinery, as well as consumer goods to Russia, have been banned.”

]In contrast, “the supply of Russian goods continues to be subject to restrictions, including outright bans and blocking tariffs, up to and including initiatives to impose a price cap on oil and gas.”

By closing seaports and airspace and cutting off land links, “the West tried to push Russia into a transport blockade,” the diplomat said.

This situation caused several “friendly countries to reduce or suspend many joint projects with Russian partners for fear of so-called ‘secondary’ sanctions,” Feoktistov said.

Despite these difficulties, Russia managed to maintain the stability of financial institutions and the ruble’s strength after its collapse in February.

The country also managed to curb inflation, which peaked in May, direct its exports to new markets and replace Western imports with supplies from other countries or increase its production.

“Technological exchange is also possible beyond the U.S. and EU, and the foundation laid in recent decades suggests that the high-tech key industries of the national economy will be self-sufficient,” the ambassador said.

COOPERATION

In this context, Feoktístov pointed to his country’s experience in implementing major infrastructure, energy, technology, space, health, and digitalization projects.

As he did with the Sputnik V vaccine against COVID-19, he provided Argentina with the technology needed to produce the drug. He assured that his country is also ready to share its knowledge in other areas.

“In recent years, the foundations have been laid for the joint realization of numerous important projects; today, we must not lose what we have achieved so far and decide how to smoothly continue these plans in the interests of the peoples of our countries,” he concluded.

At the end of July, the Russian ambassador warned that sanctions against his country contributed to the worsening international crisis caused by rising food prices.

Diplomatic relations between Argentina and Russia have the character of a comprehensive strategic partnership based on the joint declaration signed in Moscow in 2015 by then-President Cristina Fernández de Kirchner (2007-2015) and Vladimir Putin.