The international commerce relation between China And Russia, two partners that accumulate $240 billion in bilateral trade according to President Vladimir Putin, is being disrupted by a new series of sanctions as a consequence of the Russian-Ukrainian conflict.
Chinese companies have become more careful due to the inclusion of 46 national organizations in this new list, and strategies that allowed Russian companies to pay for imported goods are now not working. According to Izvestia, the so-called dual-use products, that can be used for both military and civilian purposes, are the most affected by these disruptions.
Russian officials are already aware of the problem. On August 29, Deputy Chief of Staff of the Presidential Executive Office Dmitry Peskov touched on the subject, explaining that the two countries were already aware of this issue.
Peskov declared:
With such volumes, of course, and in such an unfriendly environment, it is impossible to avoid some problematic stories. But the truly partnership spirit of our relations allows us to discuss and resolve current problems in a very constructive manner.
Some payments have been returned even when shipments have already been sent, causing problems in commercial logistics. While these issues primarily affect dual-use products, other products may also be impacted as a precaution, since Chinese companies are trying to avoid being sanctioned.
Russia has recently regulated the use of cryptocurrency for international payments, and it is ready to launch trials to use digital assets as part of a mitigation effort for these problems. However, these trials, even if successful, might not be able to solve this issue in short, as these point to establishing crypto exchanges by the most significant national exchanges by next year.
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