December 02, 2009

Chinese Exports to Russia Collapse

Despite numerous bilateral summits, extension of credit by China, and big new energy deals, Russia-China trade collapsed -34.4% over the Janury-October 2009 period and will most likely end the year at below 2008 levels Russian China trade rep Sergei Tsyplakov said today. Imports from China to Russia fell almost -50% to $13.8 billion (US dollars) value.

The trade figures are more a reflection of the poor state of Russia's economy. While Russia continues to profit from its oil and gas sector Prime Minister Putin scolded Russian industry at a party congress in St. Petersburg last weekend. Putin said Russia "need[s] to clear the economy of hopeless, outdated and money-wasting industries" and singled out the nation's auto industry as a particularly dire sector with output down 60%. Retail sales in Russia fell -8.5% in October and many foreign retailers including majors Walmart, Carrefour, and IKEA, are pulling out as they see their businesses fail to materialize or bog down in red tape or corruption....

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