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| Ukraine war casts shadow over China's belt and road ties with Russia-led Eurasian trade bloc |
| 2022-06-12 |
| [SCMP] "Collaboration between EAEU and [Belt and Road Initiative] is affected because sanctions from America and Europe increased the risk of secondary sanctions for Chinese companies," said Zhao Long, a researcher at the Shanghai Institute for International studies. Contractors and investors involved in EAEU and belt and road joint projects could run afoul of restrictions if they seek financing or conduct other business with companies that have been targeted by Western sanctions, he said. The risk of these "secondary sanctions" has prompted hundreds of businesses and multilateral institutions to suspend ties with Russia. The Asian Infrastructure Investment Bank and Bank of China have curtailed Russian access to capital markets, according to a database compiled by Yale University’s School of Management. Chinese tech giant Huawei has also halted new orders and furloughed some staff in Russia, the database showed. Oil and gas behemoth Sinopec has suspended talks with Russia for a gas chemical plant worth up to US$500 million, and at least five Chinese companies stopped work on Russia’s Arctic LNG 2 project in northern Siberia at the end of May. |
| Posted by:Matt |