14.07.2024 – Translated from Ukrainian via Google and OFP
Beijing is demonstrating an unwillingness to risk economic relations with the West. This concerns not only the fact that Chinese banks have significantly complicated the procedure for paying for goods purchased on Russian marketplaces, as a result of which the largest Russian online stores have become empty . According to recent reports from specialized global resources, China has cancelled the delivery of liquefied natural gas (LNG) modules to Russia for the Arctic LNG-2 project just a few days before the equipment was due to arrive in the Murmansk region. Read about why China is ready to deprive the Kremlin of technology in the OBOZ.UA article.
The ship turned
As is known, in June, the Russian projects Arctic LNG-1, Arctic LNG-2 and Murmansk LNG fell under new US sanctions. It is significant that they included companies from China that were caught in financial ties with Russia. This yielded results: in early July of this year, the Chinese manufacturer of gas liquefaction plants Wison New Energies officially announced that it was ceasing work with Russia.
As noted, the vessel delivering Chinese Wison equipment to the Murmansk Region was already on its way and had covered most of the route, including the South China Sea, the Indian Ocean and most of the Atlantic Ocean. The situation is becoming critical for the Russian company NOVATEK, which is the executor of the above-mentioned LNG projects, because specialized ships are needed to transport liquefied gas, which are virtually impossible to buy or build due to sanctions. It is for this reason that the Russian Arctic LNG-2 project cannot begin gas supplies and was forced to stop production at one time. China was the last chance for the Russians to save this project.
Powerful sanctions blow to the Kremlin
It can be stated that China is gradually implementing decisions on partial restrictions on economic cooperation with the sanctioned Russian Federation. It is necessary to recall that at the beginning of May this year, this was stated by the adviser to the Ministry of Foreign Affairs of the PRC Wang Wenbin, who officially announced that the export of products that are critically important for the military-industrial complex of the Russian Federation would be stopped.
In addition, it became known that in 2024, Chinese manufacturers reduced direct deliveries of machinery, mechanisms and electrical equipment to the Russian Federation for the first time since the end of 2022. In particular, in March, exports of such goods decreased by 15 percent and amounted to 2.9 billion US dollars in monetary terms, which follows from data published by the General Administration of Customs of the People’s Republic of China. A decrease in exports is also noted in the spring of 2024 by 14.2% compared to the same period in 2023.
The result of warnings from the US
The trend, which shows a change in Beijing’s actions, began after US Secretary of State Antony Blinken’s visit to the People’s Republic of China in April. There, it was stated that the United States could impose sanctions on China if it continues to supply dual-use goods to Russia, thereby strengthening its defense-industrial complex. In particular, Blinken expressed “grave concerns about China’s supply of components that fuel Russia’s aggression against Ukraine,” adding: “We are fully prepared to take action if China does not act.”
Consequently, for China, in the sphere of restrictions on trade operations with Russia, there are so-called red lines , which are still operating quite successfully, that is, restrictions that no serious Chinese company dares to openly violate, since few of them have turnover exclusively with Russia. And losing significantly larger markets in Europe, the USA and other countries, including in Asia, is absolutely unprofitable for them.
A striking example was the situation described above with equipment for Russian LNG projects. Something similar is happening in many other sectors of the economy, in particular in the sphere of banking payments. In general, all this quite logically fits into the concept of China as a major trading state that understands where the most promising markets are actually located. For example, one of China’s largest trading partners was and remains Taiwan, which in the rhetoric of the Chinese leadership is the PRC’s biggest enemy. Therefore, Beijing’s position is quite simple:
Russia and some projects that are important to the Kremlin can be neglected in order to continue to work calmly with the West.
The mafiosi use the threats of nukes as leverage, the chicoms use mafia land as leverage, and the West uses its economic might. A lot more could be done to help the West and for Ukraine to gain the upper hand in this war if it wasn’t for the dollar is mightier than blood concept in too many dark skulls. But, what this article covers is a way down the right path. It’s a path and not a destination.
What about India?
India is not so much involved in this as far as I’m informed.