China Rescues Russian Economy, Trade Reaches Rp2.1 Quadrillion

JAKARTA – Trade between Russia and China from January to July 2024 increased by 1.6%. From that increase, cooperation between the two countries reached USD136.67 billion or equivalent to IDR2.1 quadrillion.

China is considered the main savior of Russia’s evil economy. The West imposed sanctions on Moscow. The sanctions were imposed due to Russia’s massive invasion of Ukraine in February 2022.

Quoting from the Moscow Times, trade between the two countries reached a record high of USD240 billion or equivalent to IDR3.8 quadrillion in 2023.

Citing Chinese customs data, it reported that China exported goods worth USD61.64 billion to Russia in the first seven months of 2024, down 1.1% from the same period last year. Meanwhile, imports reached USD75.03 billion, up 3.9%.

Having lost access to lucrative energy markets in Europe, Russia has become increasingly dependent on China for its energy commodity exports.

However, amid the boom in trade, the threat of US sanctions on Chinese banks has created a barrier to cross-border payments between Russia and China. There are stricter compliance procedures from banks in the country.

(fch)