The Wider Trade Impact
Russia’s invasion of Ukraine has sparked Europe’s largest land war since 1945, raising the prospect of an exodus of refugees and posing a serious threat to global trade flows.
While the focus is on Russia’s energy exports, there are plenty of other potential chokepoints, ranging from food staples and strategic metals to luxury items.
In all, more than 130 economies have at least one good or commodity import that is predominantly sourced from Russia, Ukraine and neighbouring Belarus, according to Bloomberg analysis.
After Western nations hit Russia with unprecedented economic and financial sanctions over the country’s invasion of Ukraine, China has announced that it won’t participate in unilateral sanctions.
Instead, the country “will continue to maintain normal economic, trade and financial exchanges with relevant parties,” Guo Shuqing, the head of China’s Banking and Insurance Regulatory Commission, said in a statement quoted by the Wall Street Journal on Wednesday.
China is Russia’s most important trading partner, accounting for 13% of the country’s exports in 2019. The world’s largest exporter is even more important as a supplier of goods for Russia, accounting for 22% of the country’s goods imports in the same year.
Among Russia’s eight most important import partners, China and Belarus are the only two countries not participating in the wide-ranging sanctions against the country, after South Korea announced that it would join Western countries in banning Russian banks from the SWIFT network and “actively participate in the international community’s efforts for a peaceful resolution of the situation.”