THE ATTRACTIVENESS OF THE RUSSIAN FEDERATION FOR CHINESE INVESTMENTS UNDER THE CURRENT GEOPOLITICAL TENSIONS

Dorina Clichici (), Andreea-Emanuela Drăgoi () and Angela Timuș ()
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Dorina Clichici: Institute for World Economy, Romanian Academy
Andreea-Emanuela Drăgoi: Institute for World Economy, Romanian Academy
Angela Timuș: National Institute of Economic Research of the Academy of Economic Studies

Global Economic Observer, 2024, vol. 12, issue 1, 6-14

Abstract: As the West has sanctioned the Russian Federation as a form of protest to the Russian policy towards Ukraine, Moscow has turned to its closest partner in terms of political visions and strategic objectives, i.e., to China, to support its economy and pave the way for resource development and exploration energy with the help of Chinese capital. Although China declares itself neutral regarding the invasion of Ukraine by the Russian Federation, stating that it wants peace talks leading to a political agreement between Ukraine and the Russian state, the communication between these two countries with close political views is at an all-time high level so far. China has managed to absorb Russian exports boycotted by Western states and to fill the gap left by the largest withdrawal of foreign investors from the Russian Federation. The investment cooperation between the Russian Federation and China remained quite stable in comparison to the great retreat of the Western companies after the outbreak of the Ukrainian war and the imposition of international sanctions. Against his background, the research has the objective to analyse the current patterns of the investment relations between the Russian Federation and China, by presenting the current changes of the Russian investment framework under the Ukrainian war and identifying the Russian sectors that attracted the major part of Chinese investments.

Keywords: foreign direct investment (FDI); Russian Federation; China; Russian-Ukrainian war (search for similar items in EconPapers)
JEL-codes: F00 F21 F30 (search for similar items in EconPapers)
Date: 2024-06
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