Chinese exports to Russia surge as Western sanctions complicate trade

In September, China’s exports to Russia reached $11.25 billion marking the highest-ever monthly figure recorded.

Export growth, meanwhile, surged by 16.6 per cent year on year, the fastest growth seen in 2024. However, China’s imports from Russia decreased by 9.2 per cent year on year in yuan terms, a steeper drop after a 1.1 per cent decline was observed in August.

This milestone underscores the deepening trade ties between the two nations despite ongoing Western sanctions on Russia, Caliber.Az reports per Chinese media.

However, while China’s exports to Russia continue to rise, its imports from Russia have seen a decline. In yuan terms, imports dropped by 9.2 per cent year-on-year in September, following a smaller 1.1 per cent decrease in August. This decline is likely a result of sanctions imposed by the United States and the European Union over Russia’s war in Ukraine, which have complicated Moscow’s international financial transactions, even with non-sanctioning nations like China.

Compounding the issue, large-scale transactions between Chinese state-owned banks and Russia were reportedly halted in August, leaving billions of yuan in pending payments, as noted by Reuters. These disruptions are partly due to the exclusion of Russian banks from the Swift financial messaging system, which has slowed cross-border payments and further strained Moscow’s international settlements.

Despite these challenges, trade between China and Russia has flourished in recent years. Last year, bilateral trade reached a record $240 billion—a 26.3 per cent increase over the previous year. China has also stepped in to fill the gap in Russia’s automotive sector, following the withdrawal of Western carmakers, with automobiles ranking among the top six of China’s ten largest export products to Russia in 2024.

China’s trade gains with Russia extend beyond cars, with the Asian giant securing access to cheaper energy. As Russia’s largest energy buyer, China accounted for 45 per cent of Russia’s coal exports and 47 per cent of its crude oil exports between December 2022 and September 2024, according to the Centre for Research on Energy and Clean Air.

As both countries seek to mitigate geopolitical pressure from the West, these trends suggest an increasingly strategic partnership despite the mounting complexities posed by global sanctions.

By Khagan Isayev