China sharply increases prices for products for the Russian military-industrial complex
Chinese exporters have significantly increased prices for products supplied to the Russian military-industrial complex. This is evidenced by data from the Institute for Research on Developing Countries, Bank of Finland (BOFIT).
The growth is a result of the fact that due to Western sanctions, Russia has become critically dependent on Chinese imports and is effectively deprived of alternative suppliers.
Prices for Russia increased 10 times more
According to BOFIT, average prices for Chinese goods subject to export control, for Russian buyers in the period from 2021 to 2024:
increased by 87%.
For other countries, prices for similar products:
increased by only 9%.
Thus, Beijing has raised the cost for Russia ten times stronger, than for the rest of the market.
«Rising prices without rising goods»
In some categories, the price increase is not related to additional volumes or new features.
For example:
imports by russia Chinese bearings in monetary terms increased by 76%;
while physical volume of deliveries decreased by 13%.
In other words, Russia began to pay much more for a smaller quantity of goods - solely because of the supplier's price increase.
Price increases not only from China
The researchers also recorded a sharp rise in the price of goods that Russia buys through Turkey.
Sanctioned products are costly for Russian companies:
25-55% more expensive, than other products on the same market.
This confirms the general trend: Russians are becoming a «client from whom the maximum is taken», taking advantage of the fact that the country has almost completely lost access to Western manufacturers.
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