Russia and China: Payments, Logistics and Trade. RBC Broadcast Featuring Andrey Prokhorovich

The current state of Russia-China trade amid the visit of a Chinese delegation was discussed on RBC’s Day. Main News program. Participants noted that bilateral trade turnover had grown to around USD 240 billion, but this growth has been accompanied by increasing restrictions, primarily in payments and logistics.

Payments: More Difficult and More Expensive
Andrey Prokhorovich, CEO of Eurasia Development, confirmed that payment problems have become widespread. Large banks are reluctant to process cross-border transactions, while smaller banks depend on the infrastructure of major players. As a result, businesses are forced to seek alternative channels and intermediary solutions.

At the same time, the cross-border payments market is developing rapidly. New payment channels are emerging, but the number of unscrupulous intermediaries is also increasing. Transfer costs are rising as well.

Andrey Prokhorovich provided indicative costs for such transactions: for large businesses, commissions average 2.5–3%. For smaller amounts, they are approximately 3–6%, with the upper end more common in complex cases. The final cost depends on the transaction amount and type of payment.

Power of Siberia 2: Pricing and the Route Through Mongolia
The Power of Siberia 2 project was also discussed. It was noted that Mongolia, through which the pipeline was planned to pass, had not included the project in its development plan through 2028.

Chinese companies assess the project in terms of energy security risks if the route passes through a third country. Bypassing Mongolia was mentioned as a possible option, but this would mean a longer route and higher costs.

Logistics Bottlenecks and Rising Costs
The discussion also highlighted congestion on routes through Russia’s Far East, a shortage of rail platforms for moving containers, and restrictions related to documentation and routes.

Some cargo is being redirected by sea even when businesses would prefer rail transport. At the same time, rates have risen significantly: sea freight costs have increased by approximately 2.5 times, rail transport costs by around 2 times, and road freight costs by 60–80%, depending on the route.

Conclusion
Russia-China trade continues to grow, but maintaining this pace is becoming increasingly difficult. Companies are paying more for payments and logistics while also taking on additional risks.

Under these conditions, reliable financial channels, trusted partners and careful assessment of transaction economics are becoming increasingly important.

Eurasia Development Group is a reliable source of information on Chinese partners and ways of doing business with China. Our team of highly qualified specialists makes the search for technologies and counterparties in China simpler and faster.