In recent years, there has been a notable increase in the number of Chinese small and medium-sized businesses opening accounts in Russian banks, against the backdrop of declining foreign investments in the country.
Increase in Accounts Opened by Chinese Companies
Alexander Vedyakhin, First Deputy CEO of Sberbank, announced that the number of Chinese small and medium-sized businesses opening bank accounts has risen by 50% over the past year. Sberbank operates in China and has opened a center in Vladivostok to facilitate business interactions between Russian and Chinese companies.
Decline in Foreign Investments in Russia
Despite the growth in trade between Russia and China, which reached 1.74 trillion yuan ($239 billion) last year, UN data indicates a sharp drop in foreign direct investment in Russia. In 2024, FDI reached only $3.3 billion, the lowest since 2001, with a 62.8% drop from the previous year.
Economic Outlook and Relations with China
At the St. Petersburg International Economic Forum, Vedyakhin expressed concerns about the possibility of excessive slowing of the Russian economy. He noted potential difficulties in returning to growth and the consequences of high interest rates. "There is a danger of the economy overcooling, and we may not be able to come out of this slump," Vedyakhin said. Meanwhile, Russia and China plan to conduct joint military exercises.
The market situation and economic indicators show differing dynamics: growing ties with China contrast with falling foreign investments and the aspiration to strengthen the economy.