Russia And China
New Delhi. The US, which is busy ending the Ukraine war, is preparing to impose new sanctions on Russia and China. Meanwhile, Russia and China have already found a solution to this. Both countries are increasing mutual transactions under the barter system. Apart from wheat and linseed, raw material is also being sent to China from Russia in large quantities, in return for which China is supplying its cars, machinery, household appliances and construction material to Russia.
Last month, China's Hainan Longpan Oilfield Technology Company is said to have explored the possibility of trading steel and aluminum alloys in exchange for marine engines. Based on trade sources and statements from customs services, eight such transactions have been identified.
According to sources, Chinese cars are being traded in exchange for Russian wheat. However, its quantity could not be ascertained and on what basis the price of both was fixed. In two other transactions, flax seeds were exchanged with things like household appliances and construction material from China. There is a huge demand for Russian wheat and flax in China. Apart from this, metals were exchanged from Russia in exchange for machines from China.
Russia exported aluminium in exchange for providing raw material to China. Let us tell you that due to annexation of Crimea in 2014 and starting the Ukraine war in 2022, America and Europe together have imposed more than 22 thousand sanctions on Russia. The aim was to hurt Russia's 2.2 trillion dollar economy. Apart from this, Washington has also imposed sanctions on India for buying oil from Russia.
However, Putin has claimed that contrary to the estimates of Western countries, Russia's economy has been growing much faster than the G7 countries in the last two years. The US had disconnected Russian banks from the SWIFT payment system if the Ukraine war was not stopped. At the same time, Chinese banks were warned not to support Russia. Fearing US secondary sanctions, Chinese banks are reluctant to take money from Russia. Due to this, both countries have agreed on barter transactions, which are more difficult to trace.
In 2024, the Russian Economy Ministry issued a 14-page guide for foreign barter transactions, which recommended using this method to stay safe from sanctions. China warned America, there will be retaliation if tariff is imposed China has warned America to refrain from advising to impose tariffs on countries buying oil from Russia through G7 and NATO countries, otherwise we will not refrain from taking retaliatory action.
China has said that a strong response will be given to America's unilateral intimidation and politics of economic pressure. This statement from China came on the second day of the meeting of Chinese and American delegations on economic and trade issues in Spain. Chinese Foreign Ministry spokesman Lin Jian said that China's normal economic and energy cooperation with all countries, including Russia, is completely legal, legitimate and reciprocal.
On a question related to the US' joint call for G7 and NATO members to impose tariffs on China, the spokesperson said that what the US has done is a unilateral, coercive and economic pressure strategy. This will seriously impact international trade rules and threaten the stability and security of global industrial and supply chains.
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