Results for: Russian economy

Chinese exports to Russia have declined for the first time since the onset of the Ukraine war in 2022, marking a shift as Chinese companies navigate secondary sanctions imposed by the US to target industries supporting Russia’s military supply chain. Despite initially elevated trade volumes after the invasion, Russia’s dependence on China has grown, with bilateral trade reaching $240 billion last year. However, China’s General Administration of Customs reported a 15.7% decline in exports to Russia in March 2023 compared to the previous year, driven by payment restrictions in Chinese yuan and US sanctions on machinery equipment exports. Experts believe the threat of secondary sanctions poses a significant challenge to Russia’s economic stability and highlights the importance of the political and strategic relationship between Russia and China in finding ways to circumvent the sanctions.

Despite initial resilience, Russia’s economy is facing a looming crisis due to escalating military costs, Western sanctions, and unsustainable economic measures. Experts warn that President Putin has only a year and a half of financial cushioning left to address a policy trilemma involving military funding, living standards, and economic stability.