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Thursday, 2 May
world

"Black swans" have already flown to Putin: the economic crisis in China will affect Russia

The economic crisis in China, which now seems quite probable, will affect the whole world, in particular Russia. The Chinese because of their own problems will require a greater discount on Russian raw materials - oil, gas and timber, which will have a negative impact on the economy of the aggressor country.

This is stated in the article "Apostrophe".

Experts predict that, most likely, the Chinese economy will not fall in the near future, but it will slow down significantly, which is also very risky for China.

"The scale (of the Chinese economy) is so large that a crisis in the PRC will certainly provoke a world crisis. No one will be able to avoid it," noted Maksym Oryshchak, analyst at the Center for Exchange Technologies.

The crisis in China is likely to affect Russia, which has become noticeably closer to China after the invasion of Ukraine. Russia's main exports to China are raw materials: oil, gas, timber, etc. And the Chinese will demand from Putin an even greater discount on the prices of these goods.

"And the Russian Federation will be forced to agree to Beijing's price dictate, which, of course, will have a negative impact on the Russian economy," said Vitaliy Shapran, member of Supervisory Board (The Council) – National Bank of Ukraine.

According to him, the demand for energy resources will fall, and oil and gas prices will fall after that, which will deprive the Russian Federation of a significant part of its export revenues.