China refuses to transit goods through Russia
Pravda Ukraine
Russia’s restrictions on the transit of dual-use goods have led to a sharp decline in the flow of cargo by rail from China to Europe.
Source: The Moscow Times
Details: Chinese suppliers have lost confidence in the route after Russian customs officers massively confiscated their goods.
“We have not dared to ship goods by rail since November,” said Andrew Dang, CEO of Shanghai-based Air Sea Transport.
Russia increased transit controls in October, particularly for mechanical and electronic products that could be used for military purposes.
Due to Western sanctions, some confiscated goods remained in Russia. This has paralysed logistics flows – up to 80,000 containers are transported to Europe through Russia every month.
Amid the problems, China and Kazakhstan opened a new railway route bypassing Russia. Trains will run through Turkmenistan, Iran and Türkiye to Europe. Beijing is also developing alternative routes through Central Asia and the Caspian Sea.
Background:
- China made it harder for Russians to purchase equipment and chemicals for Russian businesses.
- Chinese banks started blocking payments from Russian credit institutions that have been subject to new sanctions imposed by the US Treasury.
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