China Is Not Coming to Russia’s Rescue: Economist Says Russia’s Financial Isolation Is Deepening
24 March 16:05
Russia has effectively lost access to external financing due to sanctions, and China—which formally remains its key partner—is neither investing in nor lending to the Russian economy. Under these circumstances, domestic resources—funds from citizens and businesses—have become the main source of financing for the war. Economist Andrey Novak made this statement in an interview with the YouTube channel "Komersant Ukrainian".
“Even China is reducing its investments in the Russian economy. Since 2022, the volume of Chinese capital investments in Russia has remained at zero growth or has even declined,” the expert noted.
He emphasized that despite public statements about a “strategic partnership,” Beijing is not providing Moscow with loans or financial support, but is instead exploiting the situation for its own interests.
“Whatever China can profit from in Russia, it happily profits from… But as for giving money—no, this so-called strategic partner isn’t providing any,” Novak said.
According to the economist, due to limited access to external markets, Russia is increasingly relying on domestic sources of financing, particularly funds from the population. At the same time, even these resources are becoming increasingly controlled by the state.
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He noted that taxes have already been raised in Russia, and there is a growing risk that citizens’ access to their own savings in banks will be restricted under various pretexts.
“There are already informal directives, under the pretext of fighting ‘financial criminals,’ not to issue cash and to restrict access to accounts. And this already indicates that they have fewer and fewer financing options left,” Novak explained.
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The economist emphasized that China is taking a pragmatic stance: it profits from trade but avoids the financial risks associated with the war against Ukraine.
“China is exploiting the situation as much as it can… but it is not supporting Russia financially,” he concluded.
