Beijing’s economic support for Russia has limited the impact of Western sanctions against Moscow imposed after the invasion of Ukraine, according to a US report by the Office of the Director of National Intelligence (ODNI) .
China has become an increasingly critical economic partner for Russia since the invasion of Ukraine in February 2022, according to the document, which was released on Thursday by Democratic members of the US Congress.
Beijing is “pursuing a variety of economic support mechanisms for Russia that mitigate both the impact of Western sanctions and export controls,” according to the report, which was mandated by Congress.
In particular, China has increased its energy imports from Russia and provided containers and insurance policies to ensure the transportation of crude oil, according to the text.
In addition, there has been an increase in trade payable in yuan, the Chinese currency, which is one way of circumventing the international financial system.
Finally, according to the report, Beijing has probably supplied Moscow with dual-use (civilian/military) equipment that has been used in Ukraine, although it is difficult to establish the extent of the support offered by China to enable Russia to circumvent sanctions and export controls.
These Western sanctions involve freezing assets, including those of Russia’s central bank.
Economic sanctions also involve import and export restrictions against Russia. For example, the European Union (EU) has banned imports of Russian crude oil.
For its part, Beijing insists it is neutral towards the conflict and has never openly condemned Russia’s invasion of Ukraine.
