China’s trade with Russia won’t be enough to offset sanctions, U.S. says

Russia’s Deputy Prime Ministers Yuri Trutnev, Tatyana Golikova, Andrei Belousov, Alexander Novak and Dmitry Chernyshenkosign joint documents following a video conference call between Prime Minister Mikhail Mishustin and China’s Premier Li Keqiang at the House of the Government.

The White House says that China's trade with Russia isn't enough to make up for the impact of U.S. and European sanctions on Moscow.

The U.S., U.K. and European Union imposed new sanctions on Russia in the hours after it invaded Ukraine. The measures did not include restrictions on purchases of Russian oil and gas, which is a significant driver of the local economy.

In Beijing, China's foreign ministry said the country's trade with Russia and Ukraine would not be affected by the attack.

China and Russia have less of a share of the global economy than the Group of Seven countries. The impact of the sanctions will not be covered by China, Jen Psaki told reporters late Thursday in Washington.

China accounted for 17.3% of global GDP in 2020, compared to Russia's 1.7% and the G-7's 45.8%, according to World Bank data.

China is Russia's largest trade partner. The Belt and Road Initiative is a plan by Beijing to increase global influence.

China's customs agency said that trade between China and Russia reached a record high in 2011. China's imports from Russia were more than its exports.

To reach Moscow and Beijing's goal of $200 billion, trade needs to grow by an additional 37%.

China's trade with Ukraine rose by 29.7% last year to $19.31 billion, a record high, and split fairly evenly between imports and exports, according to customs data.

China and Russia are strategic partners. China and Ukraine are friendly partners, according to a CNBC translation.

China will conduct normal trade cooperation on the basis of Five Principles of Peaceful Coexistence and the basis of friendly relationship with both countries.

According to Chinese customs data, just under two-thirds of China's imports from Russia were energy products. The agency said that Russia is China's largest source of electricity and crude oil.

It remains to be seen if the lifting of restrictions on Russian wheat and barley imports by China will have a meaningful economic impact or if it will be a symbolic gesture.

China's ability to offset the impact of Western sanctions will be determined by the scale and scope of sanctions agreed to by the U.S. and its partners.

The Russian ruble fell to a record low against the U.S. dollar.

Western sanctions on Russia have not stopped the Kremlin from using the international payments network. The Chinese yuan was the fourth most-used currency for global payments in January, up from sixth place two years ago.

China criticized the U.S. for providing military assistance to Ukraine and said Russia does not need such support.

A high-profile meeting of the leaders in Beijing just before the Winter Olympics in the city strengthened ties between Russia and China.

The Chinese side said the two countries need to strengthen their partnership on energy and advance cooperation on scientific and technological innovation.

On the same day, Russian energy giants signed deals with China's state-owned oil and gas company.

As long as China continues to implement its trading relationship with Russia, those measures will be very helpful, according to a senior fellow in the nuclear policy program at the Carnegie Endowment for International Peace.

If China took additional measures to support Russia, it is likely to do those measures in a very low-profile manner in order to mitigate the provocations seen from European and other countries.