Russian-Ukrainian Conflict: Directions and Trends in Russian-Chinese Economic and Trade Cooperation

Abstract

The recovery of the global economy after the epidemic was already slow, and the outbreak of conflict between Russia and Ukraine further slowed the pace of recovery, which had an important impact on the global economy. In terms of energy prices, after the conflict between Russia and Ukraine, world oil and gas prices have risen sharply, and the European region, which is heavily dependent on Russian oil and gas resources, has been hit hard. The direct impact of the Russian-Ukrainian conflict on China cannot be called significant, but the indirect impact should not be underestimated. The Chinese economy is facing the effects of imported inflation driven by rising international prices for commodities such as oil, gas and wheat. Tough sanctions imposed by Europe and the United States on Russia have affected Russia's import-export chains. In this turbulent situation, Russia and China insist on strengthening economic and trade cooperation in the interests of both sides. In the current situation, Chinese companies need to pay attention to effective risk control when expanding their business in Russia, especially when proposing medium- and long-term investment projects. On the one hand, Chinese companies need to be familiar with the new international financing rules and new means of payment under Western sanctions. On the other hand, they also need to better understand the new needs of the Russian market and learn the laws of domestic and international business change in order to reduce the multitude of uncertainties in project operations.