Chalking out alternate supply chains to tide over the sanctions imposed by the EU, Russia has launched new chartered ships to trade commodities with China and India. The trade will supply Russia with critical raw materials required by its industries.
Russia and India have launched the shipping service for easier delivery of critical raw materials, as wartime sanctions from the West have blocked the typical supply chains. Additionally, China-based Swift Transport Group and Russian cargo company Inteco have collaborated on a shipping service between ports in Russia’s Far East and China.
Since Moscow invaded Ukraine in February, neither China nor India have cut down their trade with Russia, both nations have stood neutral to the scenario. For the three months leading up to May, China roughly doubled its spending on Russian energy imports compared to a year ago to $19 billion, per the report. China’s independent oil refiners have been buying supplies from Moscow for cheap as well.
India has spent $5.1 billion in the same stretch, about five times year-ago levels. India has snapped up discounted Russian oil, importing more of it so far in 2022 than it did in all of 2021.
Western sanctions against Russia have dissuaded some countries from doing business with Moscow, and some companies are self-sanctioning.
Russia is seeking to boost alternate trade partners. And during a speech at the Caspian Summit in June, Russian President Vladimir Putin said Russia is pushing into the Caspian region with new port infrastructure. “First of all, we are talking about building the International North-South Transport Corridor,” he said. “This is a truly ambitious project, a 7,200-kilometer-long transport artery from St. Petersburg to ports in Iran and India.”
