Russia PM visits China with U.S.-sanctioned delegation
Mishustin to meet Xi as trade grows between two nations targeted by West
SHANGHAI -- Russian Prime Minister Mikhail Mishustin on Tuesday took a delegation subject to U.S. sanctions on a two-day trip to China, highlighting the growing trade and investment ties between the two countries as the West seeks to curb their economic influence.
Mishustin addressed a Russia-China business forum in Shanghai that was attended by officials from both countries, as well as top executives from more than 15 Russian companies, according to Russian state news agency Tass.
The prime minister has been on the U.S. Treasury Department's sanctions list of Russian people and entities since April 2022, which largely cuts them off from the international financial system and freezes any assets they hold in the U.S.
Other members of the delegation on the sanctions list include Deputy Prime Minister Alexander Novak, whose role is to expand Russia's outbound economic development, and Minister of Economic Development Maxim Reshetnikov, who also serves on the boards of sanctioned entities such as state lender VTB Bank and Russian Railways.
Another sanctioned oligarch who traveled to China is Herman Gref, CEO of Sberbank of Russia, the country's largest state lender. Gref also oversees companies in other sectors and has served as an adviser to President Vladimir Putin since the 1990s, according to the U.S. Treasury Department.
Ahead of Tuesday's business forum, top officials of both countries met in Shanghai to discuss the possibility of constructing a third bridge at China's northeast border with Russia, logistics centers and renewable energy projects, according to Russia's Ministry of Foreign Affairs.
Russia has a trade surplus with China due to a higher volume of energy exports as a result of the U.S.-led international sanctions. China's imports from Russia in the first four months of 2023 grew 25% to $39.5 billion, while exports swelled 67% to $33.7 billion, according to China's customs office. This growth builds on the momentum of 2022, which saw bilateral trade reach a record $190 billion.
Mishustin recently told Russian local media that the $200 billion target set by leaders of two countries in 2019 was within reach this year, 12 months earlier than the originally estimated.
The delegation's visit was announced on Friday as the leaders of the Group of Seven nations gathered in Hiroshima, Japan. The rich democracies agreed to levy additional financial penalties on Kremlin.
"We are imposing further sanctions and measures to increase the costs to Russia and those who are supporting its war effort," the G-7 leaders said in a statement on Ukraine. They vowed to close trade loopholes, further reduce reliance on Russian energy and limit its future extractive capacity and squeeze Russia's access to the international financial system.
In Shanghai, Mishustin was scheduled to hold talks with former Brazilian President Dilma Rousseff, head of China-led BRICS New Development Bank. He will then head to Beijing to meet President Xi Jinping and his Chinese counterpart, Prime Minister Li Qiang.
Russia and China are expected to sign bilateral agreements after their talks.
"The areas of our cooperation may include not only organizing industrial production and enterprises for deep processing of raw materials, but also providing mutual access to advanced technologies, promoting promising innovative solutions, and, of course, harmonizing national standards and technical requirements," Mishustin was quoted by Tass as saying.
"Our country is the leading supplier of oil to China. Exports of natural and liquefied gas, as well as coal, are steadily increasing. We are ready to collaborate on the implementation of other major projects, including those involving renewable energy."