China imposes new sanctions on supply of equipment and chemicals to Russia
China will make it harder for Russian businesses to purchase equipment and chemicals.
Source: The Moscow Times
Details: China will implement an enlarged list of dual-use commodities subject to export controls beginning 1 December.
The expanded list will contain IT equipment, particularly servers and components, which are already difficult to be exported to Russia.
It is worth noting that argon gas used for welding will also be restricted.
Under the new laws, Chinese enterprises that export dual-use products to Russia would face a 25% tariff.
At the same time, importing goods into Russia via third-party countries will be difficult because China's export control applies to all international deliveries. In addition to obtaining a specific licence, Chinese exporters must now disclose information about the end recipient of the items.
Background:
- China's exports are still in the positive, but market participants report a 30-40% fall in shipments by rail this month.
- The Russian government reported a loss of about US$30 billion in imports owing to payment issues.
- In August, problems with settlements with Chinese partners worsened in Russia.
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