How Red China is taking advantage of Russia’s invasion of Ukraine

Note: This article may contain comments that reflect the opinions of the author.

When Russia invaded Ukraine, the West quickly responded severe punishmentsanctions that squish Russian ruble and in general affect quite heavily on the Russian economy.

While the average Russian may suffer the consequences of such sanctions, the Red China, who is one of the few countries that openly sided with Russia in the war, knows the opportunity. and are using war to take advantage of Russia for their own economic gain.

One way is to buy cheap Russian exports of natural resources, especially oil and natural gas. Like Newsweek report:

“China could be the first to take advantage of Russia’s untouchable energy and raw materials following the US decision on Tuesday to ban imports of oil, natural gas and coal from the country.

The Chinese government is discussing with state-owned companies the possibility of purchasing energy and undervalued goods

Bloomberg reported the same in early May, reporting that China is taking advantage of the opportunity to buy Russian oil that it can get a discount on thanks to sanctions. In ‘s store words:

Chinese companies are expected to sell Russian oil at a discount if sanctions deter other buyers, traders said, potentially repeating the pattern seen when Iran and Venezuela were clamped down by the US. regime.

They say importers in the countries that use the most oil are likely to take advantage of the opportunity to stockpile stocks cheaply. Potential Chinese buyers can use alternatives to secure goods as other countries avoid dealing with Russia.

But that’s not all. In addition to buying Russian natural resources, China is also considering buying shares of Russian companies cheaply due to the economic damage affected by the sanctions.

That’s also according to Bloomberg, which published a shocking report alleging that:

China is considering buying or increasing stakes in Russian energy and commodities companies, such as gas giant Gazprom PJSC and aluminum producer United Co. Rusal International PJSC, according to people familiar with the matter.

People said Beijing was in talks with its state-owned companies, including China National Petroleum Corporation, China Petrochemical Corporation, China Aluminum Corporation and China Minmetals Group, about any real estate issues. any potential investment opportunities in Russian companies or assets.

So while China may pay a heavy economic or global image price for at least partially siding with Russia in the crisis, Chinese companies and investors could also find see a big market opportunity.

China, with few energy reserves, needs to import oil and gas.

Now, thanks to Western sanctions on Russia, the country can not only buy stockpiles of those resources cheaply while the rest of the world struggles under the burden of high gas prices. than.

And not only that, it can also maintain access to those resources in the future by acquiring, or at least acquiring large shares in Russian companies that exploit those resources, something could prove to be a major driver for the Chinese economy and strategic autonomy moving forward. How Red China is taking advantage of Russia’s invasion of Ukraine

Jake Nichol

24ssports is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – The content will be deleted within 24 hours.

Related Articles

Back to top button