The Institute of Russian, Eastern Europe and Central Asia of the Chinese Academy of Social Sciences and the Social Sciences Literature Publishing House jointly released the "Russian Yellow Book: Russia Development Report (2022)". The report shows that the Russian economy will achieve a rapid recovery in 2021, with an annual GDP growth of 4.7%. Russia's economic recovery has an industry-wide nature, with almost all industries contributing to the economic recovery.
Some other features of Russia’s economic performance in 2021 include stronger-than-expected inflation, sound fiscal health, higher net exports, and record-high foreign exchange reserves. Among the many factors that promote economic growth, the continued rise in international energy prices is still the most important driving force. In 2021, the main line of Russia's macroeconomic policy will begin to shift from epidemic prevention and anti-crisis to mid- and long-term structural adjustment and economic growth promotion. The structural policies implemented by Russia in the process of epidemic prevention and anti-crisis have made the government more and more deeply involved in market economic activities. The Russian economic system has a tendency to return to economic planning and government intervention.
The report pointed out that in recent years, due to political mutual trust between China and Russia, a comprehensive strategic partnership of coordination in the new era has been established, and various obstacles affecting the development of economic and trade relations have been removed politically. Both sides are committed to promoting the development of economic and trade relations. Bilateral trade has continued to grow, with the Sino-Russian trade volume reaching US$146.887 billion in 2021, setting a record for the fourth consecutive year.
On the energy issue, China and Russia have also conducted good cooperation. Russia has been China's largest source of imports of energy products for many years. In 2021, China imported $27.3 billion worth of oil from Russia, accounting for about 15% of China's total oil imports. In addition to oil, China also imports refined oil products from Russia, such as gasoline, diesel, kerosene and other petroleum refined products. Russia's LPG exports to China account for 8% of China's total imports. In February 2022, during President Putin's visit to China, he signed a 10-year contract for China to import 100 million tons of Russian oil and a 30-year contract to import 1 trillion cubic meters of Russian natural gas. Natural gas pipeline contract (started from the date of signing). China's energy security for a period of time in the future has been further guaranteed.
In 2020, China imported 12.64 million tons of iron ore and other mineral raw materials from Russia. Russia's exports are mainly natural resources. In addition, wood, machinery and fish are also the main commodities China imports from Russia. From the Russian side, machinery products are the main products Russia imports from China, followed by electronic products, plastics and textiles.
In recent years, financial cooperation has gradually become an important area of Sino-Russian cooperation. In 2020, more than half of Sino-Russian trade settlements will abandon the use of US dollars, of which settlements in euros account for the majority, and the proportion of settlements in RMB and rubles is also increasing. The cooperation between the two sides in the financial field is conducive to the diversification of the international monetary system, and can effectively avoid various sanctions that the United States may impose on the two sides with the help of the US dollar hegemony.
The report pointed out that China-Russia relations will continue to play a leading role in the diplomacy of the heads of state in the future. The two countries will strengthen official and non-governmental contacts in various fields and at all levels to push bilateral pragmatic cooperation to a new level; Strengthen cooperation in new areas such as cities and Arctic development; make full use of the leading role of cross-border infrastructure such as railway bridges, highway bridges, oil pipelines, and natural gas pipelines, and make steady progress towards the goal of achieving a trade volume of 200 billion US dollars; further consolidate the long-term A friendly social foundation, strengthening people-to-people and public diplomacy, promoting people-to-people and cultural exchanges and think-tank exchanges, creating a favorable atmosphere of public opinion for the development of the comprehensive strategic partnership of coordination between the two countries in the new era, and adding more motivation for cooperation.