Russia and China: Strategic Partnership for Sanction Evasion. Olena Yurchenko gave her commentary for Express.

16:31, 30.08.2024
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Recently, the British publication Express published an article titled "China Supports Vladimir Putin's War Machine with the Help of the West." In the article, Olena Yurchenko, a senior analyst at the Economic Security Council of Ukraine (ESCU), explained how Russia uses China to circumvent sanctions. 

In her commentary for the publication, Olena Yurchenko noted that one of the most important elements of China-Russia cooperation is CNC (computer numerical control) machines, which are critically important for the military-industrial complex of the aggressor, as they are used in the production of nearly every type of modern weaponry. Additionally, the automation and precision provided by CNC machines ensure that Russian military equipment remains reliable and effective despite intensive use. 

The value of China's exports of CNC machines to Russia have increased tenfold, reaching $68 million by mid-2023. This trend underscores China's critical role in supporting the Russian military-industrial complex, especially considering that Western sanctions have blocked direct access to such technologies from other sources. 

Today, China-Russia trade cooperation in the CNC sector relies on "three bypass routes" that still depends on the West: 

  • Supplying machines produced in countries of the sanctions coalition to Russia through China as a re-export hub; 
  • Exporting equipment to Russia that is manufactured at Western companies' factories in China; 
  • Russian import of Chinese machines whose production depends on Western components, technologies, expertise, and investments. 

For more details on China's export of CNC machines to Russia and ways to block it, read the full article in Express or the ESCU report "Third-best option: ESCU’s new report on China’s role in Russian maintained access to critical industrial equipment.