Chinese exporters have raised prices on critical elements, particularly those with military applications, for Russia’s defense industry, according to a new study by the Bank of Finland Institute for Emerging Economies (BOFIT), The Moscow Times reported.
Between 2021 and 2024, the prices of export‑controlled Chinese goods sent to Russia—many of them dual‑use components vital to the defense sector—climbed by an average of 87%, compared with just 9% for similar shipments to other destinations.
According to Financial Times, citing a senior Western sanctions official, these steep markups restrict Moscow’s access to sensitive technologies, even though it has managed to bypass Western sanctions through cooperation with Chinese suppliers.
The price increases served as a notable, substantial indirect limitation on Russia’s military capabilities.
A source with ties to the Russian government told Reuters that China is acting in its own self-interest rather than behaving like an ally.
“China does not behave like an ally. Sometimes it lets us down and stops payments, sometimes it takes advantage, sometimes it’s outright robbery; there is nothing allied about it,” the source said.
Although bilateral trade climbed from $146.9 billion in 2021 to a record $254 billion in 2024, BOFIT noted that much of this growth was driven by higher prices rather than greater volumes.
For example, imports of Chinese ball bearings rose 76% in value but dropped 13% in terms of physical units.
The study also found that Turkey has significantly raised prices on sanctioned goods sent to Russia, charging Russian buyers 25–55% more than customers in other markets.
“If you increase the price of a good by 80%, you almost halve what they can actually buy,” the Western official said.
BOFIT found that sanctions have hampered Russia’s technological capacity by making imports of critical elements more expensive. The report affirmed that China now accounts for a major portion of Russia’s export earnings through energy deals while also supplying the technological products considered crucial for its military.
A second source close to the Russian government added that Russia’s military-industrial complex would face serious difficulties operating without Chinese electronics and components.
Previous reports suggested that China has become the top foreign supplier of rare metals such as gallium, germanium, and antimony to Russian defense-related firms. These shipments have replaced Western exporters and provide materials essential for ammunition, drones, missiles, and even components for nuclear weapons.
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