Serhat Tunar –TDO- Russia’s attempt to shift its economic policy towards the East following the annexation of Crimea and the start of western sanctions has hit a dead end.
Despite numerous appeals by Russia’s leaders, Chinese companies refuse to invest in Russian real economy, and are following the example set by western businesses, and withdrawing their money.
Between January and June, the total volume of direct foreign investments from China into Russia dropped by 24%, according to the datum of the Central Bank of Russia.
By the end of the first half of the year, Chinese investors had withdrawn $1 billion dollars, reducing their total investment to $3.18 billion.
China is only willing to invest in the Russian economy under certain conditions, and may now impose them on Moscow due to sanctions, observes Yuri Zaytsev, a senior researcher from the Gaidar Institute.