Russian President Vladimir Putin has denounced the Western sanctions imposed on Russia, terming them “discriminatory” and calling for a reform of the International Monetary Fund and the World Bank.
In an interview with China’s Xinhua news agency, Putin emphasized the need for a new financial system based on “openness and true equity.”
This statement comes ahead of his four-day visit to China, where he will meet with Chinese President Xi Jinping and attend a military parade commemorating the end of World War II.
The visit, described by the Kremlin as “unprecedented,” highlights the strengthening economic ties between Russia and China. Despite Western sanctions, bilateral trade between the two nations reached a record $245 billion in 2024, with China emerging as Russia’s largest trading partner.
According to Putin, transactions between the countries are now almost entirely carried out in Russian rubles and Chinese yuan.
“It’s essential to end the use of finance as an instrument of neo-colonialism, which runs counter to the interests of the Global Majority,” Putin said.
“Alongside our Chinese partners, we support the reform of the International Monetary Fund and the World Bank. We are united in the view that a new financial system must be based on openness and true equity.”
The economic partnership between Russia and China has been growing steadily since 2014, driven by Russia’s need for alternative markets and China’s desire to expand its economic influence.
The relationship has become increasingly important for Russia, with China accounting for around 30% of Russia’s exports. In return, Russia has become a significant supplier of oil and gas to China.
The partnership is not without its challenges, however. Chinese companies have been cautious about investing in Russia due to the risk of Western sanctions.
Despite this, Chinese investors are increasingly investing in the Russian economy, with the number of companies with Chinese co-owners in Russia growing 32% in 2024 compared to the previous year.
Russia’s dependence on China is growing, with the Russian economy becoming increasingly reliant on Chinese trade and investment.
According to experts, this dependence is likely to continue, with Russia potentially becoming a subordinate economic partner to China rather than an equal.
The implications of this growing partnership are significant, both for the global economy and geopolitics. As Putin noted, “I am confident that Russia and China will continue to work together towards this noble goal, aligning our efforts to ensure the prosperity of our great nations.”
The partnership between Russia and China is likely to continue shaping the global economic landscape, with potential consequences for the West and the international order.
In recent years, the economic relationship between Russia and China has evolved significantly. China’s purchases of discounted Russian oil reached an all-time high in 2024, even as overall trade growth between the countries slowed.
The yuan has also gained prominence in the Russian economy, with nearly 90% of transactions between the countries settled in yuan and rubles.
As Russia’s economic ties with China deepen, the country’s economic vulnerability to Chinese influence grows. Nevertheless, the partnership between Russia and China is driven by a shared desire to challenge Western dominance and promote a more multipolar world order.
The upcoming meeting between Putin and Xi will likely focus on strengthening economic cooperation and addressing common challenges.
As the global economy continues to evolve, the partnership between Russia and China will be closely watched by experts and policymakers around the world.