Chinaʼs exports to Russia fell in March for the first time since mid-2022, amid increased US threats to impose secondary sanctions on Chinese banks for allegedly supporting the Kremlin in its war against Ukraine.
This is reported by Bloomberg.
Russian President Putin may raise the issue of the need to increase trade volumes during negotiations with Chinese President Xi Jinping during his visit to China next month. Russia considers the reduction in exports to be temporary, writes Bloomberg with reference to an anonymous source.
According to Chinese customs, Chinaʼs exports to Russia fell by almost 16% in March compared to March last year. This is because international transactions with Russia put banks and businesses in other countries at risk of secondary US sanctions for facilitating the war against Ukraine.
Trade between Russia and China reached a record $240 billion last year thanks to Chinese imports of Russian oil and exports of cars, industrial equipment and electronics to the Russian Federation.
Turkeyʼs trade with Russia is also shrinking under the pressure of Western sanctions.
The total volume of Russian imports decreased by 18% in March compared to the same period last year, according to data from the Bank of Russia.
With more frequent U.S. warnings about the risk of secondary sanctions, "trade settlements are now taking longer, and Russian importers are increasingly relying on Central Asian countries for supplies," Bloomberg Economics economist Oleksandr Isakov said.
Last December, the US Treasury Department announced that it would introduce secondary sanctions against companies and banks in third countries for cooperation with Russia. After that, Chinese banks tightened restrictions on financial transactions with the Russian Federation.