China giving economic lifeline to Russia: US intelligence

A US intelligence report released on Thursday, China’s economic relations with Russia have contributed to reducing the impact of Western sanctions implemented in response to Moscow’s invasion of Ukraine.

China giving economic lifeline to Russia: Since Russia’s invasion of Ukraine in February 2022, China “has become an even more critical economic partner for Russia,” according to the declassified assessment that Democratic senators made public.

“Beijing is pursuing a variety of economic support mechanisms for Russia that mitigate both the impact of Western sanctions and export controls,” it reads.

China increased its reliance on Russian energy imports and helped transfer crude oil by providing tankers and insurance.

As well as “expanding their use of domestic payment systems,” the two parties have “increased the share of bilateral trade settled in yuan,” which enables “Russian entities to conduct financial transactions unhindered by Western interdiction.”

However, the assessment states that it is “difficult to ascertain the extent to which (China) has helped Russia evade and circumvent sanctions and export controls.” Beijing is said to have likely provided Moscow with dual-use equipment used in both the civilian and military sectors in Ukraine.

In the early stages of the conflict, Russia tried to grab Kyiv and overthrow the government of the country, but it was unsuccessful. Instead, Russia seized large portions of other land that Ukrainian forces are now battling to retake.

Beijing claims to be a neutral party in the dispute, but Western nations have criticised Beijing for not denouncing Moscow and for maintaining its ties with Russia.