Russian President Vladimir Putin shakes hands with Chinese President Xi Jinping during a meeting in Beijing, China, on October 18, 2023.
Photo: REUTERS/SCANPIX
Moscow’s biggest trading partners, Turkey and China, have suddenly cut their supplies to Russia because of fears of secondary sanctions from Washington. This was reported by The Moscow Times, citing economic analysts.
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According to analysts, the recent export boom has been flattened not only by the threat of sanctions, but also by difficulties in monetary transactions. The Financial Times also reports on the deterioration of the situation in Russia. For China, the Russian market is still a secondary market with a 3% market share, so the risks outweigh the potential benefits.
Since the beginning of March, Chinese and Turkish banks have begun to analyze transactions with Russia more carefully or to refuse them altogether.
Exports to Russia from China fell by 15.7% over the year, for the first time since June 2022. In December, China’s exports to Russia reached 10.7 billion US dollars, but already in March it fell sharply to 7.6 billion US dollars. Thus, the decline reached 29%.
Turkey’s exports to Russia decreased by 30% in the first quarter compared to the same period in 2023.
Western equipment usually has modern technologies that allow Russian companies to remain competitive in the world market. Without access to advanced technologies and equipment, Russia risks falling behind in technological development and losing its position in world markets.
In some sectors of the Russian economy, the domestic production base that would be able to provide the necessary technological solutions is fully or insufficiently developed. In such cases, the import of Western equipment becomes the only way to compensate for this deficit and ensure the normal operation of the industry, which is why so-called “parallel” gray imports are so important to Moscow.
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