Western sanctions are hurting Russia’s war economy by distorting prices for both imports and exports.
Chinese exporters have been charging Moscow more for military-related products given its reliance on their supplies: Prices for such goods rose 87% between 2021 and 2024, a new report found. The West hopes to see Russia completely cut off from suppliers, but it’s a “pretty good outcome” to see Chinese companies “ripping them off,” one sanctions official told the Financial Times.
Moscow’s oil giants, meanwhile, are also offering heavy discounts on crude exports after new US sanctions led Indian refiners to pause orders. It hurts a lucrative trade for Moscow just before a planned tax increase — a hike the Kremlin plans to blame on the West.
