China Reduces Arctic Investments Due To Western Sanctions Against Russia - Intelligence

(MENAFN- UkrinForm) According to Ukrinform, the Foreign Intelligence Service of Ukraine stated this on its website.

Russia is not a full-fledged alternative for Beijing to cooperation with the West, and although the overall volume of China’s foreign investments within the “One Belt, One Road” initiative continues to grow, the Arctic direction is losing priority for it.

Russia is formally the only platform for potential expansion of cooperation in the Arctic. However, five out of six joint projects were agreed upon before 2022, before the start of the full-scale war against Ukraine. One of them has already been closed due to implementation problems. No new large-scale initiatives are appearing.

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The main obstacle to increasing Chinese investments in Russia remains the international sanctions imposed because of the aggression against Ukraine.

Restrictions in the financial sector, access to technology, and international insurance sharply increase the risks for any major project. Under such conditions, pragmatic Beijing is in no hurry to increase investments in the economy of a country that is under international isolation.

Thus, Russia is not only failing to become a center of Arctic expansion for China, but is increasingly turning into a toxic partner for global business.

“While civilized countries avoid cooperation with the aggressor state, Moscow is losing investment opportunities, technological access, and prospects for development even in those regions that until recently it considered strategic,” the intelligence service noted.

As Ukrinform previously reported, pressure and repression against polar researchers are being intensified in the Russian Federation in order to hide the consequences and the state of its economic activities in the Arctic.

Photo: AI

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