China's imports from Russia in July return to growth

China's imports from Russia in July rose after two months of decline, customs data showed on Wednesday, despite US sanctions on banks complicating bilateral trade payments.

Imports from Russia rose 4.5 per cent in yuan terms from a year earlier, reversing falls of 6.7 per cent in June and 2.2 per cent in May, according to General Administration of Customs data.

Western sanctions prohibit the shipment of dual-use goods to Russia that could be used to sustain the war in Ukraine.

China's willingness to do business with Russia has extended an economic lifeline to Moscow. The neighbours have been pushing for closer economic cooperation particularly in the energy sector, as Chinese Vice Premier Ding Xuexiang said last month the share of energy in bilateral trade has reached 38.5 per cent.

A digital platform told Reuters last month the increased use of digital assets in cross-border settlements between Russia and China was also helping to mitigate payment difficulties.

China's exports to Russia, however, shrank 3.7 per cent in July, reversing 4.8 per cent growth in the prior month.

At a meeting of the China-Russia Economic and Trade Cooperation Subcommittee held in Moscow last month, Chinese vice commerce minister Ling Ji told his Russian counterpart the two countries should expand trade in goods and services, keep supply chains open and increase cooperation, a statement said.

Two-way trade value between the two countries grew 3.8 per cent in the first seven months from the same period a year earlier, hitting 970.9 billion yuan ($135.1 billion).