Changes in economic cooperation between Russia and China since the start of the full-scale war in Ukraine
By Sergei Gladkov
The present study aims to examine the main directions of economic cooperation between Russia and China in the Arctic following the outbreak of the full-scale war in Ukraine. The significance of the Arctic region for Russia is indisputable, particularly in the context of climate change and the prevailing geopolitical shifts. Russia possesses the largest Arctic territories in the world, controls the Northern Sea Route and has a centuries-long history of Arctic exploration and development. In contrast, China’s involvement in Arctic affairs is a recent phenomenon, though it aims to augment its influence in the region and exploit Arctic resources. The history of Sino-Russian collaboration in the Arctic is considerably brief, yet it has undergone significant expansion over the past two decades. The outbreak of war in Ukraine and the subsequent significant restriction of Arctic interaction between Western nations and Russia have presented China with a valuable opportunity, accompanied by some difficulties and uncertainties. The economic collaboration between China and Russia has become imperative for the latter, resulting in a state of reliance. China stands to benefit from the diversification of energy supplies, the development of alternative transport routes, and the favourable terms in trade with Russia. The threat of secondary sanctions from Western countries has the effect of limiting China’s activity in its relations with Russia. This has several consequences, including the complication of financial settlements and the slowing down of the implementation of major investment projects in the Arctic. However, since the start of the full-scale war in Ukraine, trade between the two countries has accelerated dramatically, particularly in energy resources produced in the Russian Arctic. There has also been an increase in contacts between Russian and Chinese scientists in the field of Arctic research, and plans have emerged for new projects to develop transport infrastructure linking the Russian Arctic and China. Approaches of Russia and China to cooperation with each other in the Arctic are currently undergoing significant changes, which reflect global political trends. Given the importance of the Arctic in a changing climate and shifting global balance of power, the dynamics of Russia-China relations in the Arctic are a subject worthy of close study.
Download the latest BSR Policy Briefing: BSR Policy Briefing 2_2025 (pdf) (1.5 MB)
