China's economic ties with Russia help mitigate Western sanctions' pressure

This is stated in the report of the Office of the Director of National Intelligence, published by the Democratic minority of the House of Representatives.

“The PRC has become an even more critical economic partner for Russia since its invasion of Ukraine in February 2022. Beijing is pursuing a variety of economic support mechanisms for Russia that mitigate both the impact of Western sanctions and export controls,” the report says. 

It is noted that China, in particular, has increased its purchases of Russian energy, including oil and gas that were redirected from Europe. The use of the yuan and its own financial infrastructure in commercial relations with the Russian Federation has also increased significantly. This allowed Russian companies to conduct financial transactions despite Western restrictions.

The report also states that the PRC is likely to provide Moscow with military and dual-use technologies for military use in Ukraine. This includes navigation equipment, jamming technology, and fighter jet parts.

In addition, the document emphasizes that since 2021, China has increased its semiconductor exports to Russia. At the same time, despite tough sanctions and export controls, Russia also receives semiconductors worth hundreds of millions of dollars manufactured in the United States or under American brands.

“The Intelligence Community lacks sufficient reporting to assess whether Beijing is

deliberately inhibiting United States Govemment export control end-use checks, including

interviews and investigations, in the PRC,” the report says.  

• On July 24, Politico reported that China may be secretly supplying Russia with non-lethal equipment and dual-use goods for its army, according to customs documents.