Ruble crash triggers Chinese export halt to Russia
Last week, there was a sharp decline in the ruble's exchange rate. Challenges with the Russian currency have led Chinese companies to suspend the export of certain goods. "The sharp depreciation of the Russian rouble ... have caused widespread concern among Chinese exporters, prompting many to suspend sales on Russian e-commerce platforms," writes South China Morning Post.
As reported, Wednesday's session on the Moscow Stock Exchange saw a dramatic fall of the ruble. On that day, the yuan strengthened by 0.4961 points to reach 14.9572 rubles, an increase of 3.43 percent compared to Tuesday's close. This marks the steepest one-day weakening of the Russian currency against the yuan in many months.
Furthermore, the ruble's value fell to its lowest point since the full-scale war in Ukraine began, dropping to 105 rubles per U.S. dollar.
The yuan's exchange rate holds particular importance from Moscow's viewpoint. In June 2024, the Bank of Russia announced that the yuan-to-ruble rate would set the trend for other currency pairs. The Russian central bank pointed out that the role of the U.S. dollar and the euro in the Russian market has consistently diminished over the past two years, as a result of redirecting trade flows to the East.
In May, the yuan's share of trading on the Moscow Stock Exchange exceeded 54 percent, making the Chinese currency dominant in stock trading. Problems in the currency market have led to "Chinese companies beginning to halt the sale of consumer goods in Russia."
Chinese alarm
Chinese companies involved in online trading have already ceased operations. Entrepreneurs from China reportedly express concern about the current situation with the ruble.
"According to customs data, each month, Russia imports goods from China worth $10–11 billion, which is twice the amount imported before the war. More than half of the goods purchased by Russians on e-commerce platforms originate from China, and the share of Chinese cars in the nation's automotive market has reached 70 percent," notes "Rz".
Chinese platforms are reportedly not receiving payment from Russian contractors. This is the case for an unnamed entrepreneur from Shenzhen, who is awaiting payment for goods sold on the e-commerce platform Wildberries, known as the "Russian Amazon."
Andy Guo, who founded the Waimaojia platform in Russia, confirms that the devaluation of the ruble "raises prices." This results in Chinese companies suffering "serious losses," and currency fluctuations "eating up the margins of Chinese exporters after payment."
