Russia's Fossil Fuel Exports to China Increased Over 80% Y/Y

While Europe and the U.S. try to limit imports of Russian oil and gas, Russia sells more fossil fuels to China. According to General Administration of Customs of China, in April 2022 China's imports of fossil fuels from Russia amounted to $6.7 bln. and increased 82% year-over-year. In Feb.-Apr. 2022 share of Russian fossil fuels in China's total fossil fuel imports increased to 20.8% compared to 18.6% in Feb.-Apr. 2022.

Recent data on China-Russia bilateral trade shows that sanctions imposed on Russia by the U.S. and its allies have a significant negative impact on Russian imports rather than exports, which improves Russia's trade balance and contributes to appreciation of Russian ruble. In the first four moths of 2022 Russia's positive balance in trade with China increase almost 3 times year-over-year and amounted to $10.3 bln.