Restrictions on freight operations between China and Russia imposed due to the coronavirus epidemic will, undoubtedly, have its consequences. However, in the long term China will not stop supplying its goods to Russia and it is unlikely that Russia will resort to import substitution as it was the case with sanctions.
This opinion belongs to Alexei Khudov, Deputy CEO of the Baikal-Servis TK shipping company, who spoke to Invest Foresight. The expert expressed confidence that the problem will be shortly resolved.
“When we get a coronavirus vaccine, the situation will be completely overturned. As soon as the situation improves, there will be a surge in demand for shipping Chinese products that we will have to handle,” the expert said.
Alexei Khudov does not rule out that at the year-end Russia’s trade with China will show growth due to an artificially created deficit even though right now the trade is in decline.
“On our part, we have experienced some decrease in the scope of freight operations, especially in Siberia and Russia’s Far East. The estimated drop in the shipping operations in the Far East is 20%. As for the nature of freight, mostly it is car parts, equipment and consumer goods.”