China cuts goods supplies to Russia for the first time in 4 months amid payment issues

The Moscow Times reported this, citing data from Chinese customs.

This marks the first decline in Chinese exports to Russia since July. The overall trade turnover has also started to shrink. In November, it reached 145.9 billion yuan ($20.14 billion), which is 5% lower than in October.

For the first 11 months of the year, Russian-Chinese trade totaled $222.8 billion, with growth stagnating compared to earlier years of Russia's full-scale invasion of Ukraine.

In 2022, mutual trade between Russia and China grew by 34% to $190 billion. In 2023, it rose another 26% to $240 billion. However, for January to November 2024, growth slowed sharply to just 2.1%, according to media reports.

Market sources suggest the slowdown in trade is likely tied to settlement problems.

Since the start of the year, Russian businesses have reported payment blocks by banks in "friendly" countries, including China. As of summer 2024, 80% of transactions were reportedly stalled.

• Additionally, Chinese manufacturers have recently restricted the sale of key components for drones to the U.S. and Europe, which could impact Ukrainian UAV production.