Ukraine crisis: Russia says nearly half its reserves are frozen, counts on ties with China

Russiasaid on Sunday that it was counting onChinato help it withstand the blow toitseconomy from Western sanctions, which it said hadfrozennearlyhalfofitsgold and foreign currencyreserves.

“We have part of our gold and foreign exchangereservesin the Chinese currency, in yuan. And we see what pressure is being exerted by Western countries onChinain order to limit mutual trade withChina. Of course, there is pressure to limit access to thosereserves," Finance Minister Anton Siluanov said.

"But I think that our partnership withChinawill still allow us to maintain the cooperation that we have achieved, and not only maintain, but also increase it in an environment where Western markets are closing."

Western countries have imposed unprecedented sanctions onRussia's corporate and financial system since it invaded Ukraine on Feb. 24 in what it calls a special military operation.

Siluanov's comments in a TV interview marked the clearest statement yet from Moscow that it will seek help fromChinato cushion the impact.

The two countries have tightened cooperation in recent times as both have come under strong Western pressure over human rights and a raft of other issues.

Russian President Vladimir Putin and Chinese President Xi Jinping met in Beijing on Feb. 4 and announced a strategic partnership they said was aimed at countering the influence of the United States, describing it as a friendship with no limits.

The sanctions onRussianreserveshave become one of the most painful measures for theRussian economy.

A month ago, Siluanov saidRussiawould be able to withstand sanctions thanks to abundantreservesand was even considering offering Eurobonds to foreign investors once the market volatility subsides.

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On Sunday he said the sanctions hadfrozenaround $300 billion out of $640 billion thatRussiahad initsgold and forexreserves.

Siluanov also saidRussiawill fulfilitsstate debt obligations and will pay roubles toitsdebt holders until the statereservesare unfrozen.