Although China has not joined Western sanctions, payments between countries are complicated by threats of further sanctions from the United States.
After another round of US sanctions, it became very difficult or impossible to make direct payments from China to Russia. Several major Russian commodity exporters are reporting trade difficulties with China due to delays in yuan payments caused by Western sanctions. The heads of the three export companies told Bloomberg about this the previous day, July 17.
The problems affected not only metal and agriculture, but also other industries. The Association of Russian Automobile Dealers has warned that imports of cars and auto parts from China could stop due to payment problems.
This situation indicates the impact of the sanctions on the Russian economy. The Central Bank of Russia in its July report noted a decrease in the share of imports and exports in GDP and an increase in the role of domestic demand and production.
Since late 2023, Russia has struggled to conduct transactions with other trading partners such as the UAE, Turkey and India, mainly due to US pressure on creditors and the rupee’s volatility.
Since the Kremlin invaded Ukraine, trade with China has increased by more than 60%, to $240 billion in 2023.
Although China has not joined Western sanctions, payments between countries are complicated by threats of further sanctions from the United States.
And despite the fact that in June Russian companies announced that the issue was resolved with the help of regional banks, the United States subsequently expanded the criteria for sanctions.
Today, trade continues, but has become more expensive due to increased payment costs.
Recently it became known that, against the backdrop of the growing labor shortage caused by the war against Ukraine, Russian companies have started looking for workers in African countries.
Russian analysts also started talking about the stagnation of industrial production and investment in the Russian Federation. In addition, exports continue to decline and profitability in most industries is falling.
Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.