Market news
14.03.2022, 17:21

US tells allies China signalled openness to provide Russia with military support

The Financial Times reported on Sunday that Russia had made a request to China for military assistance at some point after the start of the now three-week invasion of Ukraine.

The US has told allies that China signalled its willingness to provide military assistance to Russia, according to officials familiar with American diplomatic cables on the exchange.

''The cables, which were sent by the US state department to allies in Europe and Asia, did not say whether China had signalled that it would help Russia in the future or if it had already started providing military support. Nor did they say at which point in the conflict Beijing appeared open to offering the help.''

''The Russian offer and Chinese response have sounded alarm bells in the White House. US officials believe China is trying to help Russia while its top officials publicly call for a diplomatic solution to the war.''

''The Chinese embassy in the US on Sunday said it had no knowledge of any Russian request or positive Chinese response to Moscow. Russia on Monday also denied making any request to China.''

''Jake Sullivan, US national security adviser, is expected to raise the issue in Rome today in a meeting with Yang Jiechi, China’s top foreign policy official. Before departing Washington on Sunday, Sullivan said he would warn the Chinese not to attempt to “bail out” Russia, including helping it survive the tough sanctions from the west.''

“We will ensure that neither China, nor anyone else, can compensate Russia for these losses,” Sullivan told NBC television on Sunday. “In terms of the specific means of doing that, again, I’m not going to lay all of that out in public, but we will communicate that privately to China.”

''China has portrayed itself as a neutral actor despite its increasingly close ties to Moscow. But Chinese media and diplomats have offered support for Russia’s justification for the invasion and blamed the US and Nato for the conflict.

Chinese media have also repeated unsubstantiated Russian claims that the US helped Ukraine build biological weapons labs''

Meanwhile, ''safe haven demand for USDs and expectations for progressive Fed rate hikes this year suggest it is set to remain well supported going forward, analysts at Rabobank said.

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