"A recent report from the Bank of Finland Institute for Emerging Economies found that the median price Russia paid for Chinese exports of sanctioned products soared 87% between 2021 and 2024. For exports from other countries, however, prices of sanctioned goods rose just 9% during that time. Researchers highlighted ball bearings, which is on the European Union's list of high-priority items. While the value of Chinese ball-bearing exports to Russia jumped by 76% from 2021 to 2024, the quantity of exports actually dropped by 13%."
"And for tapered roller bearings, the unit price nearly quadrupled. Both types of products are critical industrial inputs that could also be used in Russia's weapons sector. "Our general results, illustrated here with two simple examples, lead us to conclude that trade sanctions have been successful in their aim of limiting Russia's access to critical goods," the Bank of Finland said. To be sure, China wasn't the only country that was able to squeeze higher prices from Russia."
In early 2022 Russia and China declared their friendship had "no limits" before Russia's full-scale invasion of Ukraine. The relationship has become lopsided as Moscow increasingly relies on Beijing to cushion Western sanctions. Median prices Russia paid for Chinese exports of sanctioned products rose 87% between 2021 and 2024, versus a 9% rise for sanctioned exports from other countries. Ball-bearing exports from China to Russia increased 76% in value while quantity fell 13%, implying doubling of unit prices; tapered roller-bearing unit prices nearly quadrupled. Prices of sanctioned products averaged 40% higher than non-sanctioned goods.
#russiachina-relations #sanctions-and-trade #industrial-components-ball-bearings #trade-price-inflation
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