Trade relations between Russia and China deepen after sanctions

Trade relations between Russia and China are gradually deepening due to sanctions from Western countries.

According to information compiled from Chinese customs data, trade volume between the two countries increased by 32 percent in the first eight months of this year compared to the same period last year, reaching $155 billion.

During that period, China’s exports to Russia rose 63.2 percent to $71.8 billion, while China’s imports from Russia rose 13.3 percent to $83.3 billion.

Russian President Vladimir Putin and Chinese President Xi Jinping had ordered bilateral trade to reach $200 billion by 2024. In his February statement, Putin said the goal was expected to be reached by the end of 2023.

Putin and Xi seek to increase trade in national currencies while seeking partnerships in efforts to create alternative financial institutions and systems to the World Bank and the International Monetary Fund (IMF) across the BRICS, including the New Development Bank (NDB).

THE ENERGY SHARE IS 80 PERCENT

While some Russian energy companies significantly lost their assets and export markets in the region due to increasing pressure from Western sanctions against Russia, the Nord Stream 1 and Nord Stream 2 gas pipelines, which play an important role in gas transportation native to Europe, it became inactive after the sabotage.

China, which has the second largest economy in the world; With its growing market and significant population, it has become Russia’s priority route, especially in energy exports.

In the first seven months of this year, Russia’s oil shipments to China increased 25.2 percent compared with the same period last year, reaching 60.6 million tons, while exports of liquefied natural gas (LNG) increased by 62.7 percent and reached 4.5 million tons. . .

While natural gas shipments from Russia to China via the Siberian Power pipeline will reach 15.5 billion cubic meters in 2022, the volume in question is expected to reach 22 billion cubic meters this year.

The 30-year agreement to transport natural gas via the Power of Siberia pipeline, which has an annual capacity of 38 billion cubic meters, was signed between Russia and China in 2014, and the line is expected to reach full capacity. capacity in 2025.

Energy resources account for 80 percent of Russia’s total exports to China.

RUSSIA BECOMES CHINA’S MAIN AUTOCOMMILES EXPORT MARKET

As Chinese companies tried to fill the void created by Western companies leaving Russia, developments in the automobile market came to the fore in this field.

In the first seven months of this year, China’s automobile exports to Russia exceeded 405 thousand units, increasing by about 470 percent compared with the same period last year.

Thus, while Russia became the largest market with a 14 percent share of China’s automobile exports, China’s share of Russia’s automobile imports rose to 80 percent.

China is also Russia’s largest supplier of electrical and electronic equipment, especially mobile phones and communications equipment.

THE SHARE OF THE RUBLE AND THE RUBLE IN BINARY TRADE IS INCREASING

According to data from the Russian Ministry of Economic Development, the yuan’s share in bilateral trade between China and Russia will be 75 percent in the first half of 2023, while the ruble’s share will be 15 percent.

While increased economic cooperation with Russia occasionally causes Western countries to criticize China, Chinese officials emphasize that relations are developed in accordance with international rules and that China has the right to cooperate with any country it wants.

The G7 countries’ appeal last month to unnamed third countries, stating that they must suspend all aid to Russia, which is “adopting an aggressive stance”, or face huge costs, was perceived as “anti-China”. (AA)