The prices of Russian military-industrial products have increased by nearly 90% due to China, while for other countries the increase amounts to just 9%. Beijing is pressuring Russia, imposing indirect sanctions through its pricing policy.
China has sharply raised prices for Russian military-industrial products, and tens of times more aggressively than for other countries, according to data from the Bank of Finland's Institute for Emerging Economies (BOFIT), cited by the Financial Times.
According to BOFIT, between 2021 and 2024, the average prices for Chinese products subject to export controls increased by 87% for Russia. For other countries, the corresponding increase was just 9%. Experts point out that Beijing exploited Moscow's increased dependence on Chinese imports—a dependence exacerbated by Western sanctions.
Prices rise, supplies decrease
The study shows that in some categories, the increase in cost is not due to larger purchasing volumes, but exclusively to price increases. For example, by 2024, Russian imports of Chinese bearings:
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in monetary terms increased by 76%,
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while the actual volume of deliveries decreased by 13%.
A similar picture is observed in Turkey: Sanctioned products proved to be 25%–55% more expensive for Russian buyers compared to corresponding products.
Sanctions are choking the military-industrial complex and technological chains
Overall, according to an analysis of 14 countries, prices for sanctioned imports to Russia increased by 75% between 2021 and 2024. No corresponding changes were observed in other product categories, where prices remained almost unchanged.
The study's authors estimate that sanctions have severely limited Russia's technological capabilities and that the need to circumvent restrictions through China and other countries leads to a sharp increase in the cost of critical goods.
This is, in a sense, beneficial for the West
According to the Financial Times, a senior Western official involved in sanctions policy stated that, although the main goal of the West is to "cut off" the Russian military-industrial complex from critical technologies, supplies at inflated prices are also an acceptable outcome.
As he explained: "If you increase the price of a product by 80%, you almost halve the quantity they can buy." This means that, even with alternative networks, purchases are becoming increasingly less affordable.
What does this mean for Russia?
Beijing remains a key route for circumventing sanctions, but not without cost: prices are rising, volumes are decreasing, and technological dependence is deepening. Russia is essentially paying an additional price for the sanctions and is forced to accept the terms of suppliers who are exploiting the situation.
The "Chinese stab in the back," which analysts had long warned about, is now beginning to materialize. Earlier, it was reported that China sharply reduced the supply of goods to Russia. The PETERSBURGSKAYA PRESSA had presented the reasons for this decision.
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