BREAKING NEWS: Russia’s main ally is ripping off Russia and inflating prices on dual-use goods, according to FT.

According to the study, prices for sensitive export goods shipped from China to Russia increased by an average of 87%.

Chinese exporters are significantly inflating prices for dual-use goods for the Russian military-industrial complex , exploiting the Kremlin’s dependence on them. This was reported by Financinal Times , citing a report by the Bank of Finland’s Institute for New Economies.

According to the report, prices for Chinese exports to Russia that could have military applications increased by an average of 87% between 2021 and 2024. By comparison, prices for similar goods shipped to other countries increased by only 9%.

The study confirms that Russia was able to use Chinese suppliers to acquire goods vital to the Russian military-industrial complex, circumventing Western restrictions. But this loophole came at a very high cost.

The study’s authors focused on trade in goods falling under the category of “machinery and mechanical devices,” which includes a significant amount of equipment critical to the development of the military industry.

They concluded that the sanctions “have limited Russia’s technological capabilities, making the import of critical goods more expensive.”

So much so that the “gas station country” in some cases purchased fewer dual-use goods at significantly higher prices.

For example, between 2021 and 2024, the cost of imported Chinese ball bearings to Russia increased by 76% in dollar terms compared to 2021. However, export volumes during this period decreased by 13%.

Researchers also found that Türkiye also significantly increased prices for Russian importers – by 25-55% compared to similar export goods.

“The study found that the impact of sanctions on prices appears to be increasing, possibly because stricter sanctions enforcement has allowed exporters to demand higher premiums from Russian clients,” the Financial Times notes.

As a high-ranking Western official responsible for sanctions noted in a conversation with journalists, the “rip-off” of the Russian military-industrial complex by Chinese companies is “a pretty good result.”

“If you raise the price of a product by 80%, you can essentially cut the amount they can buy in half,” the source added.

Lifting sanctions remains a critical goal for the Kremlin. The published version of the peace plan notes that “the issue of lifting sanctions will be discussed and agreed upon in stages and on a case-by-case basis.”

(c)UNIAN 2025