Written by The Banking Post
Russia is seeking to revive flagging trade with China as President Vladimir Putin prepares to meet Chinese leader Xi Jinping at the Shanghai Cooperation Organisation summit in Tianjin this weekend, sources in Moscow told Reuters.
Bilateral trade — which hit a record $245 billion in 2024 after Western sanctions isolated Moscow — fell 8.1% year-on-year in January–July 2025, Chinese customs data shows. The drop was driven by a 46% plunge in vehicle imports, a 20% fall in fuel exports, and a 27.5% decline in smartphone and computer shipments.
The slowdown comes despite a “no-limits” partnership signed in February 2022, just before Russia invaded Ukraine. “Without [China], we would not have been able to make a single missile, let alone a drone, and the whole economy would have collapsed long ago,” one Russian government source admitted.
Officials say Moscow hopes to expand cooperation in agriculture and energy, including the long-delayed Power of Siberia-2 pipeline, though talks have stalled for years.
China remains Russia’s biggest trading partner and its technological lifeline, but insiders in Moscow acknowledge Beijing acts primarily in its own interests. “China does not behave like an ally,” one source said, citing payment delays and what they described as “outright robbery.”
Despite tensions, Beijing insists ties remain strong. “The overall foundation of cooperation between the two sides remains solid,” a Chinese foreign ministry spokesperson said.
Putin is expected to join more than 20 leaders at the summit, including India’s Prime Minister Narendra Modi, in what will be another test of Moscow’s ability to navigate its growing economic dependence on China.
