China threw Russia an economic lifebelt after the West hit Moscow with sanctions over the war in Ukraine. As Putin prepares to visit Beijing this week to promote even closer ties, Washington is ramping up the pressure.
Days after Russia launched its full-scale invasion of Ukraine in February 2022, the West foisted deep sanctions on Moscow in the hopes of hurting Russia’s ability to finance the conflict. The sanctions targeted politicians and oligarchs, froze foreign reserves, curbed access to Western technology and cut Russian banks off from the Swift international payment messaging system.
The financial penalties were widely expected to bring Russia to its knees. Initially, the ruble plummeted in value and the Russian economy contracted by 1.2% in 2022. Last year, however, Russia’s growth outpaced both the United States and Europe at 3.6%. The country is on course for another strong year in 2024.
Much of that growth came in the way of trade with China, which acted as a counterweight to the West by refusing to impose sanctions and becoming a major buyer of Russian energy. Despite pressure from the US and the European Union, the two countries have formed a deeper alliance since the war started.
This is the best summary I could come up with:
The sanctions targeted politicians and oligarchs, froze foreign reserves, curbed access to Western technology and cut Russian banks off from the Swift international payment messaging system.
“For Russia, besieged by sanctions and global isolation, China is a key lifeline for its wartime economy,” Philipp Ivanov, founder and senior advisor of the consultancy Geopolitical Risks + Strategy Practice, told DW.
“China is the main destination for Russian energy trade and the major provider of critical equipment and technologies that Russia can no longer access in the West.”
While Russia has now become China’s top crude oil supplier, some analysts think technological exports rather than energy have played a bigger role in boosting bilateral trade.
After all, Russia made those energy deals with China at a huge discount after the West cut its reliance on Russian oil and gas in the wake of the Ukraine conflict.
“China will not dramatically limit its economic support, but will seek more covert channels of providing it — through third-country transit and transactions, which is already occurring through Central Asian countries,” said Ivanov.
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