Following the full-scale aggression against Ukraine in 2022, Russia’s economic relations with the West deteriorated rapidly. The sanctions were designed to cut the Russian Federation off from key technologies and markets for energy resources. Russia’s unilateral actions have also contributed to the deterioration. China has stepped into the role of Russia’s most important economic partner, effectively helping to stabilise the Russian budget and limit the effectiveness of the Western response to the aggression.

The economic relationship between China and Russia has its roots both in the complementarity of their economies and their common political goal of eroding the existing international order. China imports Russian oil and gas, while Russia uses Chinese manufactured goods to sustain its manufacturing sector (both for civilian and military needs), support army operations, and counter inflation to stabilise consumption. Maintaining a functioning economy and reducing the costs borne by the population allows Russia to continue the aggression and is important in future talks about ending the war.

EU and U.S. actions against China to limit its support for Russia are bearing fruit. Above all, U.S. secondary sanctions in the area of financial services, as well as pressure on companies involved in cooperation with the Russian energy sector, have proved at least partially effective. Despite these successes, the Russian Federation has been able to continue its aggression. It is therefore advisable to increase the pressure on China to reduce its support for Russia, both at the level of individual sectors and companies, as well as China’s economy as a whole.