23 Feb 2022
Russia Eyes China Trade amid Mounting Western Sanctions over Ukraine Invasion
The Index Today
As Russia began its invasion of Ukraine this week, the West has retaliated with a series of sanctions they have imposed on the Kremlin. The United States is expected to block important Russian fiscal organizations from gaining access to the dollar. This would be poised to significantly impact Russian trade and finances.
However, in the midst of Western pushback, Russia has turned to China, redirecting its trade practices to the Asian country. Data from the United Nations and World Bank show that since sanctions following Russia’s invasion of Ukraine’s Crimea in 2014, China has grown to become the Kremlin’s largest export target.
According to World Bank official Harry Broadman, fresh sanctions from western countries will only prompt Russia to work through the loopholes to strengthen its trade deals with China.
Broadman contended, "The problem with sanctions, especially involving an oil producer, which is what Russia is, will be leakage in the system." He also added, "China may say, 'We're going to buy oil on the open market and if it's Russian oil, so be it."
Although U.S. President Joe Biden has promised to impose stringent sanctions on the Kremlin which would target the “Russian economy, not ours", it seems unclear how that would culminate since Russia is one of the top producers and exporters of oil in the world.