Despite Western attempts to stifle Russia\u2019s economy through sanctions following its invasion of Ukraine last year, Russian trade volumes with dozens of countries have actually increased since the war began \u2014 with NATO member Turkey providing a \u201ccritical\u201d economic lifeline for Moscow, according to an analysis by the Washington-based Atlantic Council.<\/p>\n
The countries that have increased trade since the February 2022 invasion include several European Union and NATO members, according to the analysis.<\/p>\n
\u201cSuch surges in trade, however, are not necessarily an indicator of support\u201d for the war launched by Russian President Vladimir Putin, the report says. \u201cInstead, it is more likely they are predominantly the result of companies \u2014 and countries \u2014 pursuing legal opportunities for cheaper exports and new gaps in the Russian market.\u201d<\/p>\n
China<\/p>\n
It notes that China\u2019s trade with Russia had already been increasing at an average annual rate of 23% over the past five years, excluding the impact of the COVID-19 pandemic in 2020. It said China\u2019s trade with Russia has jumped by another 27% since the Ukraine invasion.<\/p>\n
Other countries have seen a far greater increase in trade with Russia since February 2022.<\/p>\n
\u201cWe see increases of trade across a range of different countries, with places like India and Greece, for example, importing cheap Russian oil at below market prices. And this is what’s causing the surge of trade there,\u201d said Niels Graham, a co-author of the Atlantic Council report, in an interview this week with VOA.<\/p>\n
\u201cBut we also see other countries like Turkey, for example, exporting a lot of electronics as well as chemical industrial goods to Russia to take advantage of the holes in the Russian market that have been caused by the sort of G7 statecraft response,\u201d he said.<\/p>\n
He said that Beijing is actually showing signs of \u201crestraint\u201d since Moscow\u2019s invasion of Ukraine.<\/p>\n
\u201cChina is certainly engaging with Russia, certainly increasing its trade overall, but doing so very much in line overwhelmingly with the red lines the West has drawn \u2014 for fear of Western retaliation against China, cutting it off from a much more important Western market,\u201d Graham told VOA.<\/p>\n
Russian Oil<\/p>\n
India\u2019s trade with Russia has soared by 250% since 2021, the biggest increase by far among Russia\u2019s trading partners.<\/p>\n
China and India imported record volumes of Russian oil in May, according to Reuters, totaling about 110 million barrels for the month. Analysts say the world\u2019s two biggest buyers of Russian oil are capitalizing on discounted prices after the G7 group of rich nations imposed a price cap of $60 per barrel in December.<\/p>\n
Washington has warned that Moscow is seeking to circumvent the price cap by using the Eastern Siberia Pacific Ocean pipeline along with ports in eastern Russia, where there may be less Western oversight of trading activities.<\/p>\n
The West never intended to completely block Russia oil sales, said Graham.<\/p>\n
\u201cDoing so against an oil producer as large as Russia would have skyrocketed global oil prices, would have likely tipped the global economy into recession, and would have made a lot of countries angry against Western actions,\u201d he said.<\/p>\n
Turkish lifeline<\/p>\n
The Atlantic Council report says NATO member Turkey also provides a vital lifeline for Russia\u2019s economy, with trade volumes increasing by some 93% since the invasion.<\/p>\n
It said Turkey has sold Russia sensitive material like integrated circuits and semiconductors which could be used in weapons systems.<\/p>\n
\u201cAlthough Turkish exports of electronic machinery, including critical integrated circuits, fell in the immediate aftermath of Russia\u2019s full-scale invasion, they have since recovered and grown well beyond the pre-invasion average. From March 2022 to March 2023, Turkish electronic exports to Russia jumped by about 85%,\u201d the Atlantic Council report said.<\/p>\n
\u201cTo Ankara\u2019s credit, following pressure from the Group of Seven [G7], Turkey has agreed to halt its transit of sanctioned goods to Russia,\u201d the report added. \u201cHowever, its trade with Russia remains a vital economic lifeline for its businesses as the country recovers and reconstructs from a devastating earthquake earlier this year.\u201d<\/p>\n
Turkey assured the European Union in March that it would no longer ship or transit goods to Russia that are subject to sanctions or export controls, according to an EU official quoted by Reuters.<\/p>\n
Ankara has denied exporting goods to Russia that could have military applications.<\/p>\n","protected":false},"excerpt":{"rendered":"
Despite Western attempts to stifle Russia\u2019s economy through sanctions following its invasion of Ukraine last year, Russian trade volumes with dozens of countries have actually increased since the war began \u2014 with NATO member Turkey providing a \u201ccritical\u201d economic lifeline for Moscow, according to an analysis by the Washington-based Atlantic Council. The countries that have […]<\/p>\n","protected":false},"author":495,"featured_media":10087,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-10086","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/10086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/users\/495"}],"replies":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/comments?post=10086"}],"version-history":[{"count":0,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/10086\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media\/10087"}],"wp:attachment":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media?parent=10086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/categories?post=10086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/tags?post=10086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}