Conflict in Ukraine creates new geopolitical situation

"The Russia-Ukraine conflict has created a new geopolitical situation. For me, the most important thing is that the supply chain and industry are changing. First, these changes affect the energy supply from Russia, which used to be directed towards Europe. After the conflict between Russia and Ukraine broke out, this supply was interrupted through oil pipelines, including sea pipelines. Europe and Russia found themselves divided. Of course, this is considered a big blow to Russia, but Europe is affected much more heavily," Mr. Hoang said at the latest session of the Russia-China academic conference organized in Shanghai by the International Valdai Discussion Club and East China Normal University (ECNU).

In this regard, he stressed that Russia's shift in energy supplies to Asia is beneficial to China. On the other hand, oil producers in Saudi Arabia under these conditions began to coordinate their actions with Russia more actively, which helped control oil prices. "Keeping prices high also affects inflation in the United States," the expert asserted.

Another important change in the world, Mr. Hoang said, is related to the fact that Russia has used alternative financial information transmission systems to SWIFT. "More and more countries are starting to use the dollar for payments at a lower level and prefer the yuan. All these changes are accelerating the decline of the hegemony of the US dollar. In this regard, the US is concerned that the use of the dollar will decline, because of the surplus of dollars in the market," Mr. Hoang said, emphasizing that US hegemony is based on the dollar and armed forces.

The expert also noted that due to Western sanctions, the center of Russia's economic life is shifting to the Far East, which has huge resources and huge untapped development potential. If this trend continues, the expert predicts the emergence of a new cluster that he calls North Asia, which includes the eastern part of Russia, Mongolia and China./.