With Russia’s economy teetering and its invasion of Ukraine nearing the three-year mark, China is capitalizing. The latest example is that four Chinese companies are buying a Russian coal mine that’s facing millions in tax debt and risking bankruptcy, according to the Russian state news agency Interfax.
Russia’s effort to invade Ukraine has depleted its resources, as U.S.-led international sanctions cripple the country’s economy.
Russia’s currency, the ruble, has tanked in value. In November, its decline prompted Chinese businesses to stop selling on Russian e-commerce sites.
The mine purchase is China’s latest Russian investment amid its decline. Last month, Chinese-owned companies bought Russia’s stakes in uranium mines in Kazakhstan. And this week, China blocked Russian ships from entering its ports because they were carrying oil facing U.S. sanctions.
Russia has pointed to trade with China as a sign of its economic strength while leaning on China as an ally. Large swaths of the international community, meanwhile, have shut Russia out.
But that relationship has been tenuous since Russia first invaded Ukraine in 2022, with China staying officially neutral on the war while remaining close with Russia on security and geopolitical issues.