Russian exports to China will rise as investment lags

Significance

Russia's deepening ties with China over the last four years reflect Moscow's isolation from the West. Despite Moscow's efforts, the pace of Chinese investment in Russia has been slower than anticipated, but Russian oil and food exports are rising.

Impacts

• Continued US and EU sanctions heighten the importance of attracting Chinese funding for Russian corporates.
• Russia will compete with Central Asian states for energy and OBOR-related investment.
• Attempts will be made to tap into a larger pool of Chinese private investors.
• The Russian Far East will benefit from Chinese industrial and infrastructure investment.
• Exchange programmes will improve understanding of legislative, business, educational and cultural contexts in both countries.