BRI across Russia in jeopardy

RUSSIA / FSU POLITICS - In Brief 25 Apr 2022 by Alex Teddy
China intended Russia to form a vital part of the Belt and Road Initiative. China wanted railroads and roads across Russia to be upgraded. The aim was to have a fast trade route so Russia could easily export goods to the EU.Sanctions on Russia have made trade via Russia problematic. China wants to be friendly to Russia without alienating Western export markets overmuch.Trade between Russia and China is GBP 112 billion per annum. Trade between them grew 29% Y o Y in Q1 2022.Foreign capital is starting to price in a higher China risk because sanctions might be imposed on China for assisting Russia.The BRI is being rendered problematic by the Ukraine War. BRI started in 2013. Russian Railways was supposed to be its lynchpin. Many foreign businesses refuse to do business with Russian Railways. It has been sanctioned by the US and EU.DB Schencker is a Russian logistics company and refuses to deal with Russia. Hapag Lloyd has also said it will not deal with Russia or Belarus. This will hurt the BRI.Xi has had dozens of meetings with Putin since Xi became president. Xi will not want Putin to be overthrown.

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