Efforts undertaken by the Russian authorities to circumvent the financial blockade imposed by Western nations through the utilization of “friendly” currencies are encountering significant obstacles. The recent developments highlight challenges faced with regards to trading goods and conducting financial transactions. India, for instance, has refused to accept rupees in exchange for goods sold to Russia, leaving the latter with billions in exported oil without a viable destination. Furthermore, complications have emerged in the United Arab Emirates (UAE), a prominent hub for evading sanctions, posing further setbacks. According to reputable sources, the Moscow Exchange’s initiative to introduce trading in the UAE currency, the dirham, has encountered significant hurdles. The project, initially announced by the exchange in December with the intention of commencing before the year’s end, currently teeters on the brink of failure. The primary issue lies in the exchange’s inability to secure a reliable counterpart, specifically an Arab bank willing to facilitate settlements. UAE banks, known for their stringent compliance procedures, approach the risks associated with engaging in financial transactions with the “toxic” jurisdiction of Russia with a firm stance. This setback underscores the challenges faced by Russian authorities in their quest to overcome the financial blockade. Despite their efforts to forge relationships and establish alternative trading mechanisms, the resistance encountered from countries such as India and the UAE highlights the enduring nature of the sanctions regime and the skepticism surrounding Russian jurisdiction.
