Most consumer goods in Russia are now supplied from China, but it is now becoming unprofitable for the Chinese to sell to the Russian Federation.
Suppliers of consumer goods from China began to temporarily stop selling on Russian online platforms due to the fall in the ruble exchange rate. This was reported by the South China Morning Post, citing industry sources.
It is noted that the fall of the ruble to its lowest level since March 2022 has caused concern among Chinese traders, especially those who trade in the Russian currency.
China remains Russia’s largest trading partner, replacing Western companies in the supply of mass goods. According to customs data, $10-11 billion worth of goods from China are imported into the Russian Federation every month, which is double what it was before the start of the war. More than 50% of goods in Russian markets are supplied from China, and the share of Chinese cars in the market reaches 70%.
However, the devaluation of the ruble has caused serious damage to Chinese exporters, said Andy Guo, founder of Waimaojia business platform.
“The fall of the ruble, on the one hand, increases prices, which reduces the purchasing power of Russian consumers. On the other hand, currency fluctuations reduce exporters’ margins after paying costs ,” he explained.
There are about 150,000 Chinese sellers on Russian marketplaces such as Ozon, Wildberries and Yandex Market. However, payment problems complicate the situation. One of the operators in Shenzhen said that his company had sent goods worth hundreds of millions of yuan to Russia, but still had not received payment from Wildberries. Another seller noted that rubles received in Russia can only be exchanged on the black market, which is dangerous.
Since the beginning of November, the ruble has lost 10% against the yuan and the dollar and 7.5% against the euro. According to Reuters, this is the worst performance for the Russian currency in the last two years.
It was previously reported that China would limit the sale of equipment and chemicals to Russia. The changes may indicate that the United States has been able to influence China, and now the export of important products to Russia will become more difficult or stop.
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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.