The Russian business sector faces new challenges amid a decline in imports from China

According to data from the General Administration of Customs of China, the volume of exports from the country fell by 13% in April, totaling $8 billion.The main issue has been the refusal of local banks to accept payments from Russia, which has significantly impacted trade.

The situation is becoming increasingly complex each month. In February 2024, a noticeable decline in new contracts was observed, as leading Chinese banks, including the Bank of China, began to return a significant portion of yuan transfers from Russian legal entities. As a result, fulfilling even previously paid orders has become challenging.

Russian companies are attempting to circumvent these restrictions; however, the solutions they have found are either temporary or lead to significant increases in costs. The conclusion drawn from this situation is clear: the current payment mechanisms and cooperation with China require rethinking and adaptation to the changed conditions.

In response to this volatility in trade with China, Russia has intensified its interaction with other Asian countries. Under sanctions and with limited access to Western technologies, Russian businesses are forced to seek new markets for sourcing equipment and electronics. The Ministry of Economic Development of Russia reports a significant increase in trade turnover with several Southeast Asian countries. In 2024, trade with Singapore and Myanmar more than doubled, while trade with Cambodia rose by 15%, with Laos by 17%, and with Vietnam by 8%.

However, despite these positive changes, total imports from Asia in the first half of 2024 decreased by 4.8%, totaling $86.6 billion. This underscores the complexity of the current economic situation and the need for further strengthening ties with Asian partners to mitigate the consequences of reduced imports from China.

Thus, Russian businesses will need to adapt to new conditions by increasing their presence in alternative markets and optimizing the logistical and financial aspects of international trade. Developing new relationships and strengthening existing ties with Asian countries may be key to maintaining stability and growth amid global economic uncertainty.

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