Currency
Kremlin has only 2 days left: Russia's main ally imposes sanctions against it
China has imposed new restrictions on the supply of dual-use goods to Russia. The new sanctions will come into effect on December 1 and will significantly complicate the process of purchasing machinery, equipment, and chemicals by Russian businesses.
According to the Russian media, due to friendly relations with the aggressor country, Beijing has not officially announced the upcoming restrictions. However, starting in December, exporters of dual-use products from China to Russia will be charged a 25% tax.
Among other things, the updated list of restrictions will include IT equipment, including servers and components, with which Russia has already had a tense situation. The sale of argon gas for welding will also be restricted – contracts already signed are still being fulfilled, but future deliveries are not yet being made.
It will also be problematic to import goods to Russia through third countries. Since China's export controls apply to all deliveries abroad, Chinese exporters will need to not only have a special license but also provide information about the final recipient of the goods, which will significantly worsen the situation with payments.
Russian analysts have concluded that the new rules may confirm that the United States has influenced China, and now exports of important products to Russia will be greatly complicated if not completely stopped. By adhering to the restrictions, China is demonstrating to the United States that it is preventing the misuse of sensitive technologies and materials for use in Russia's war against Ukraine.
Earlier, Chinese companies began to refuse direct deliveries to Russia of products from the stop-lists of foreign economic activity codes and demanded that imports be redirected to third countries. Before that, Russia's trade with China was complicated by the refusal of Chinese banks to accept payments from Russian companies after the introduction of the 12th package of EU sanctions against Russia.
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