China hikes prices for Russian military industry amid sanctions
Illustrative photo: China has raised prices on goods for the Russian military-industrial complex (facebook.com/uralchem)
Chinese exporters have significantly raised prices for the Russian military-industrial complex since the start of the full-scale war in Ukraine, this is stated in a report by the Bank of Finland’s Institute for Economies in Transition, according to the Financial Times.
According to a study by the Bank of Finland’s Institute for Economies in Transition, prices for controlled exports from China to Russia increased by an average of 87% from 2021 to 2024, while similar goods for other countries rose by only 9%.
The research shows that Russia used Chinese suppliers to circumvent Western restrictions on products with potential military applications, but sanctions following the 2022 invasion increased its costs.
The study’s authors, Iikka Korhonen and Heli Simola, examined goods in the machines and mechanical appliances category, which are important for the military industry. They found that sanctions made importing such goods more expensive and limited Russia’s technological capabilities.
In some cases, the price increases were due solely to higher prices rather than changes in shipment volumes. For example, by 2024, the cost of ball bearings from China to Russia had risen by 76%, while export volumes fell by 13%.
The study also showed rising prices for sanctioned goods for Russia in Türkiye, ranging from 25% to 55%. Overall, the median price of controlled imports increased by 75%, while prices for other goods remained stable.
China’s support for Russia
Chinese companies continue to actively assist Russia in sustaining its war against Ukraine. They supply the Russian military-industrial complex with components necessary for weapons production.
As early as September, US Special Presidential Envoy for Ukraine, Keith Kellogg, emphasized that if China were to stop assisting Russia, the war in Ukraine "could end the very next day."
