A fresh surge in Chinese exports to Russia has brought them back to their prior heights

The growth of Chinese exports to Russia has sparked a revival in commerce, which has reduced the historic strength of the ruble.

More than a third more than the month before and 20% more than a year prior, Russia purchased $6.7 billion worth of products and services from China in July.

Data from the China Customs Administration shows that imports from Russia, which had rapidly increased from March to May but had dropped in June, only slightly increased last month. Chinese products fill the void left by Western companies that have abandoned Russia as a result of severe economic and trade restrictions.

Due to the lockout, brands like Great Wall and Geely automobiles have more than doubled their market share in Russia from the previous year. The foreign exchange market reflects the increase in demand for Chinese exports. The yuan-ruble pair’s trading volumes reached a record high last month as local demand for the Chinese currency surged.

The flood of imported products is exerting some pressure on the ruble and reviving demand for hard currency as Russian consumer spending is improving.

A foreign exchange surplus that strengthened the ruble was produced by rising prices for Russian goods and a sharp drop in imports. Sales growth from Russia to China, however, has started to slow. Oil supplies to China have decreased since the NWO’s height was achieved as Russia moved crude from European customers to Asia.