Russia is becoming a raw material base for China

According to Bloomberg, Russia will become China's largest oil supplier in 2023-2024. At the same time, the price of Russian oil imported by China is being sold at a 20-30% discount to the Brent benchmark. This means a huge financial loss for Moscow.

According to the Financial Times, the profits of major companies such as Rosneft and Lukoil have fallen by two to three times. The Russian budget is facing a serious deficit due to a decline in oil and gas revenues.

Russia mainly sells raw materials. In return, it imports machinery, equipment, and clothing from China. Analysts at The Economist called this situation a "trade balance colonialism model." That is, Moscow cannot produce high-tech products. China, on the other hand, takes cheap resources from it and sells its finished products to the Russians.

For example, more than 70% of Russia's car imports in 2024 will come from China, indicating that the Russian industry is heading for a steady decline.

Russia has long positioned itself as an "energy superpower." But today it is becoming a mere raw materials base for China.

China is using this opportunity to make Russia more politically and economically dependent. As a result, Moscow is losing its independence in foreign policy and is forced to reckon with Beijing's interests.