INSUBCONTINENT EXCLUSIVE:
The fallout from the war in Ukraine for Russia, including a weaker ruble, sanctions and the exodus of Western companies, has created an
opening for Chinese firms in the Russian market.From cars to wood and metalworking machinery, Western companies that once operated in Russia
have been pushed aside by Asian competitors
In some sectors, this shift is unlikely to be fully reversed, no matter how the war ends.What is the U.S
alliance "the one thing you never want to happen."The remarks fueled talks of a "reverse Nixon," with Trump seeking a deal with Moscow to
Secretary of State Marco Rubio also said the Russia-China embrace was worrisome, although he admitted that it would be difficult to
said they discussed prospects for economic cooperation in negotiations this spring, but no specific steps were taken.How important is China
such goods used by Russia for military purposes in 2023 originated from China, according to the Kyiv School of Economics.These include both
Chinese-made and re-exported products, such as metal cutting tools for making military hardware or microchips used in missiles for targeting
gas, an important source of foreign currency and tax revenue for the Russian economy.Trade is expanding in sectors that rely on cooperation
imports by dollar value in the first half of 2023 and for 71% of all imported material processing machines in 2024, compared to about 25% in
appliances, aircraft and electronics.Some European companies were reluctant to leave the Russian market in 2022-2023, supplying machinery to
Russia via third countries in Central Asia as sanctions tightened, a market source who worked in the woodworking business at a European
equipment prohibitively expensive, the source said, speaking on condition of anonymity for safety reasons.As a result, by late 2023, Chinese
woodworking machines, both automatic and semi-automatic, were about 30-50% cheaper than comparable European machines without a commensurate
small change considering that a European-made CNC woodworking machine can cost upwards of $200,000, and a metalworking machine upwards of
ratio is obviously very hard to compete with
Its presence includes Chinese makers like Haval, Chery or Geely, as well as Western-branded models like the Ford Taurus, which are made in
ratio increasingly falls short compared to Chinese alternatives, Ivan, a St
Western brands left, Russian authorities now face the opposite problem: an overwhelming influx of Chinese goods putting pressure on local
producers.At the request of local manufacturers, the Russian authorities even imposed taxes affecting the prices of foreign cars, leading to
China.Vladimir Putin has enjoyed a warm personal relationship with Xi Jinping for over a decade
pull Russia out of China's embrace, it needs to be offered something credible, something long-term
internally there is speculation that a comeback may be possible around 2026," a source who recently worked at a top Western consulting firm
CIS countries, particularly Azerbaijan and Kazakhstan
Strategy Partners, stepped in to fill the gap left by the top Western players."The Russian consulting market is changing, but still none of
the local alternatives have the same brand recognition, reputation or the ability to attract top talent as the Western Tier 1
and the sanctions stay in place for a few more years, maybe Russian software will take off and [Russian IT firm] 1C Company will create a
functionalities, there are still many blind spots where Russian companies cannot offer the same quality of service, he added.
