Chinese suppliers seek to reroute goods to Russia via third countries amid sanctions
Chinese suppliers have started requesting routing goods destined to Russia via third countries, reports the Russian news outlet Izvestia.
Russian businessmen have noted that these constraints have been apparent since mid-July. These restrictions predominantly impact products that have landed on Western sanctions lists, with electronics being a primary concern.
Chinese suppliers typically request shipping goods through third countries when they cannot accept payments through Chinese banks or the Russian credit organization's branches in China. While suppliers initially made some concessions, the situation is becoming more challenging — some buyers are now being notified of these conditions at the last minute, according to Alexey Razumovsky, Commercial Director of Impaya Rus.
For instance, goods may be delivered to Russia via Iran, leading to additional expenses and higher product prices, which could result in reduced import volumes. Delivery routes through third countries are still not fully refined, necessitating time to establish these channels to avoid transportation difficulties.
Pavel Kuznetsov, Deputy Director of the Institute of China and Contemporary Asia of the Russian Academy of Sciences, noted that major delivery schemes through third countries were developed back in 2022. He pointed to a threefold increase in imports from Kyrgyzstan and a 1.5 times increase in supplies from Kazakhstan. Additionally, Southeast Asian countries, Turkey, and the Gulf states are also involved in this process.