Due to the fall of the ruble, Chinese companies suspend sales in the Russian Federation

The majority of consumer goods are currently supplied to Russia from China, but now it is becoming unprofitable for the Chinese to sell in the Russian Federation.

Suppliers of consumer goods from China began to temporarily stop sales on Russian online platforms due to the collapse of the ruble exchange rate. This was reported by the South China Morning Post with reference to sources in the industry.

The fall of the ruble to its lowest level since March 2022 caused concern among Chinese entrepreneurs, especially those who traded in the Russian currency, it said.

China remains Russia's largest trading partner, replacing Western companies in the supply of mass goods. According to customs data, goods from China worth $10-11 billion are imported into the Russian Federation every month, which is twice as much as before the start of the war. More than 50% of goods on Russian marketplaces are supplied from China, and the share of Chinese cars in the market has reached 70%.

However, the devaluation of the ruble has caused serious losses to Chinese exporters, says Andy Guo, founder of Waimaojia business platform.

"The fall of the ruble, on the one hand, increases prices, which reduces the purchasing power of Russian consumers. On the other hand, currency fluctuations reduce exporters' margins after paying expenses," he explained.

About 150 Chinese sellers are represented on Russian marketplaces such as Ozon, Wildberries and Yandex Market. However, payment problems complicate the situation. One of the operators in Shenzhen said that his company had sent goods worth hundreds of millions of yuan to Russia, but still had not received payment from Wildberries. Another seller noted that rubles received in Russia can only be exchanged on the black market, which is risky.

Since the beginning of November, the ruble has lost 10% against the yuan and the dollar and 7,5% against the euro. According to Reuters, this is the worst performance for the Russian currency in the last two years.