Russia’s economy will turn increasingly towards China

Significance

The process will determine the future status of the Russian economy and the effectiveness of the Western pushback. Beijing’s role in helping Russia to expand its links with China runs alongside the Chinese leadership’s interest in mediating in the conflict.

Impacts

• Chinese companies will try to avoid the risk of reprisals from Washington and other Western powers.
• Beijing will explore a mediating role in the Russia-Ukraine conflict, mindful of Moscow’s interests.
• China will be careful in expanding links with Russia in advanced technology.
• Russia’s steer away from the dollar will help drive the internationalisation of the renminbi.