What's happened
China's involvement in facilitating oil exports from Russia and Iran amid Western sanctions has intensified. A recent report highlights how Beijing's financial systems and independent refineries are enabling these countries to circumvent restrictions, impacting global oil markets and sanctions enforcement.
Why it matters
What the papers say
According to Business Insider UK, the Atlantic Council reported that China's financial systems are enabling Russia and Iran to circumvent Western sanctions. Analysts Kimberly Donovan and Maia Nikoladze noted that oil revenue from China is crucial for both economies, undermining sanctions enforcement. Meanwhile, the Kremlin has acknowledged issues with cross-border transactions due to Western pressure on Chinese banks, as reported by The Moscow Times. This highlights the complex dynamics at play in the evolving geopolitical landscape.
How we got here
Since the onset of the Ukraine conflict, Russia has increasingly relied on China for oil exports as Western sanctions tighten. Chinese banks and independent refineries have become crucial in facilitating these transactions, often using the renminbi to bypass traditional financial systems.
More on these topics
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Russia, or the Russian Federation, is a transcontinental country located in Eastern Europe and Northern Asia. Covering an area of 17,125,200 square kilometres, it is the largest country in the world by area, spanning more than one-eighth of the Earth's in
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.