Strong trade, economic cooperation benefits all

China and Russia have maintained normal trade and economic relations for decades, despite some twists and turns. Such stable relations are not only beneficial for both countries but are also necessary for the stability of the world economy.

Bound by strong, long-term trade and economic ties, the two nations offer each other complementary advantages. China has been Russia's largest trading partner since 2010. Bilateral trade reached a record $245 billion in 2024, a 2 percent year-on-year growth.

Russia remains the leading exporter of oil to China. According to China's General Administration of Customs, Russian oil deliveries totaled 108.5 million metric tons in 2024, accounting for approximately 20 percent of China's total oil imports. Rosneft, the largest supplier of Russian oil to China, accounts for roughly half of these volumes.

Rosneft became the first Russian company to sign unprecedented long-term energy supply contracts with Chinese partners.

Agreements from 2009 (15 million tons of Russian crude to China annually for 20 years), 2013 (365 million tons over 25 years), and 2022 (a 10-year contract for 100 million tons transiting through Kazakhstan) form the foundation of sustained and productive cooperation. Current annual deliveries under these three agreements alone amount to nearly 40 million tons.

Cooperation in the gas sector is also intensifying. This year, Russian gas exports to China are expected to hit a historic high of around 40 billion cubic meters, solidifying Russia's position as China's top gas supplier.

Energy cooperation between the two countries has of late become more intense and productive, Russian President Vladimir Putin said last year.

"Bilateral cooperation in the oil and gas, coal and electricity sectors is systematically expanding," he told a forum, adding that the country's supplies of energy resources to China are reaching record volumes.

However, Russian exports to China extend far beyond hydrocarbons. Agriculture represents another critical trade pillar, with China serving as the largest buyer of Russian agricultural products. In return, China is a key supplier to Russia of advanced technological equipment, electronics, automobiles, and consumer goods. Russia and China also collaborate extensively in mining, timber processing, high-tech industries, tourism, education, and other economic sectors.

A key challenge in expanding bilateral trade lies in conducting settlements amid Western sanctions on Russia's financial infrastructure. Both nations are systematically transitioning to settlements in national currencies, which now account for approximately 90 percent of payments. Multiple Russian companies have issued RMB-based debt instruments. Advanced solutions leveraging digital technologies, netting, and clearing mechanisms are being explored. Many settlement hurdles have already been overcome through joint efforts. Full resolution of settlement issues could potentially double Russia-China trade within five to 10 years.

Russian-Chinese investment collaboration is advancing dynamically. China is a major investor in Russia's economy, with Chinese capital participating in nearly one-third of projects under the Russian Direct Investment Fund. Over the past decade, the RDIF has executed 10 projects with investments by Chinese partners totaling 780 billion rubles ($9.5 billion). Priority sectors include industry, technology, logistics and agriculture.

Moscow is poised to become a key hub in the overland economic belt of China's Belt and Road Initiative. Joint efforts to develop the Northern Sea Route involve investments in port infrastructure, icebreaker fleet construction and Arctic research.

It is crucial that Russia-China trade and economic cooperation remains mutually advantageous, multidimensional and long-term, with significant growth potential. This partnership is not directed against third countries. Strong political will and business demand for deeper economic integration underscore the relationship, with both nations serving as reliable and privileged partners.

The author is an associate professor at Financial University under the Government of the Russian Federation. The views do not necessarily reflect those of China Daily.