The IMF Changes its Rules to Isolate China and Russia

By Michael Hudson (about the author)

The nightmare scenario of U.S. geopolitical strategists seems to be
coming true: foreign economic independence from U.S. control. Instead of
privatizing and neoliberalizing the world under U.S.-centered financial
planning and ownership, the Russian and Chinese governments are
investing in neighboring economies on terms that cement Eurasian
economic integration on the basis of Russian oil and tax exports and
Chinese financing. The Asian Infrastructure Investment Bank (AIIB)
threatens to replace the IMF and World Bank programs that favor U.S.
suppliers, banks and bondholders (with the United States holding unique
veto power).

Russia's 2013 loan to Ukraine, made at the request of Ukraine's
elected pro-Russian government, demonstrated the benefits of mutual
trade and investment relations between the two countries. As Russian
finance minister Anton Siluanov points out, Ukraine's "international
reserves were barely enough to cover three months' imports, and no other
creditor was prepared to lend on terms acceptable to Kiev. Yet Russia
provided $3 billion of much-needed funding at a 5 per cent interest
rate, when Ukraine's bonds were yielding nearly 12 per cent."[1]

International Monetary Fund headquarters
(image by IMF) DMCA