BEIJING/TOKYO -- Russia's energy trade remains a glaring hole in the tightening sanctions net around the country, as increased purchases not only by China but also pro-sanctions countries like South Korea bring in foreign currency that funds Moscow's war efforts.

China's total imports from Russia jumped 26% on the year in dollar terms in March, government trade data released Tuesday shows. The increase came even as the country's overall imports dipped 0.1%, as a resurgence of coronavirus cases spurred citywide lockdowns that have hampered economic activity.

Beijing has been among the most prominent holdouts in Western-led efforts to apply economic pressure on Russia. With geopolitical tensions simmering, China is not keen to increase its reliance on countries like Australia and the U.S. for energy.

But China is not the only one buying more from Russia after the invasion of Ukraine turned much of the world against Moscow. South Korea -- which, unlike Beijing, has cooperated with Western sanctions -- logged a 44% increase in imports from Russia last month, while Taiwan's rose 9%.

These increases underscore a major weakness of the sanctions regime. As countries moved to diversify their energy procurement before the invasion, their reliance on Russian gas and oil increased.

As Western oil majors have refrained from buying Russian crude, Russia has sold more to Asian buyers at reduced prices to keep its inventories from building up. President Yu Baocai of Sinopec said last month that the Chinese state energy company will continue to buy oil and gas from Russia "in accordance to commercial principles and international trade regulations in the future."

The rally in international oil markets that followed the Ukraine invasion may have spurred more countries to take the opportunity to source crude at a lower price.

Energy has been excluded from many countries' sanctions against Russia. Washington has frozen all assets of Sberbank, Russia's largest bank, that touch the U.S. financial system, and barred American companies from conducting business with it, except for energy-related transactions. Other countries have spared Gazprombank, a major Russian lender with a focus on energy, from sanctions.

Resources exports have kept foreign currency flowing into Russia. The Institute of International Finance estimates that without an energy embargo, Russia could post a current-account surplus of more than $250 billion this year.

The influx of foreign currency has shored up the ruble, which had shattered its previous record lows last month with a plunge beyond 150 to the dollar before rebounding to pre-invasion levels and now hovering around 80 to the greenback. That has likely contributed to the steady rise in Russian President Vladimir Putin's domestic approval rating, which topped 80% in an independent poll late last month.

Exports to Russia seem to be split more sharply between economies that have joined the sanctions push and those that have not. South Korea reported a 56% drop last month. Vietnam -- which counts Samsung Electronics smartphones among its major exports -- saw an 84% plunge, while Taiwan's fell 55%.

Meanwhile, countries that have steered clear of sanctions, particularly China, have enabled Moscow to maintain access to global supply chains.

Chinese exports to its neighbor dipped just 8%, possibly due to Western financial sanctions making it harder to settle payments -- the first year-on-year decline since March, but a much smaller drop than elsewhere. Brazil, which has been similarly leery of sanctions, boosted exports to Russia by 47%.

https://asia.nikkei.com/Economy/Trade/China-South-Korea-lift-Russian-energy-imports-eroding-sanctions

Cc; Lalasticlacla, Mynd44

They are already tired of going against Russia

The West and NATO are gradually getting into economy mess of the century.

Russia energy cut has brought the worst upon them

As Western oil majors have refrained from buying Russian crude, Russia has sold more to Asian buyers at reduced prices to keep its inventories from building up

I don't know if Europe actually think Russia cannot do without them lol. They keep posting on their mainstream media's that tHeY wIlL dEcReAsE tHeIr ReLiAnCe On RuSsIaN gAs By 2028 to make it look like Russia would be doomed when that happens. Ogbeni Russia is now 100% aware of how backstabbing these Europeans are and are now shifting their obviously cheaper products to Asia.
The current mistake of Europe now is without any doubt letting their plans known to Russia. Russia will start making plans now on their own too in other not to get caught unaware or be left behind. As you dey make your evil plans, naso me too go dey make mine.

God bless Vladimir Putin
God bless Mother Russia

Santions are biting deep into their economies

Z

Who God don bless, nobody can sanction

Russia
When you have resources the world wanted then you are a Gold
With Russia having the world largest diamonds reserves.
Japan don’t even what to lose Russia gas and oil.