Trade relations between the Russian Federation and China have become complicated due to the war that Russia has unleashed against Ukraine. Ekonomichna Pravda with reference to Bloomberg said about it.
After the start of the war, Chinese buyers and creditors financing their purchases avoided the supply of coal, liquefied natural gas, as well as crude oil from the Russian Federation. The agency believes that this may reflect the concern of Chinese companies that they may fall "into the trap of sanctions."
Since then, banks have suspended financing purchases, and traders are faced with logistics problems.
The biggest trading opportunities may be related to energy, as Russia is the second largest supplier of coal to China after Indonesia. In addition, its gas exports have increased significantly since the "Power of Siberia" pipeline began operating in 2019.
"At the same time, for any Chinese firm that has significant operations abroad, permanent access to the US financial system is more valuable than any agreements it can conclude with Russia," Capital Economics said in a statement..
In addition, Bloomberg believes that for some metals, China's dependence on Russia has only weakened in recent years, as Indonesia has become the main supplier of nickel.