Chinese mining company “Lunsin”, a subsidiary of the Zijin Mining Group corporation, has announced a temporary suspension of its operations in Russia, reports the Baltimore Chronicle, citing Dialog.UA.
The decision is a result of complications in financial transactions due to sanctions and increasing pressure from banking institutions. Several Chinese banks have refused to process transactions with Russian financial entities, creating significant barriers for bilateral economic activity.
This has directly affected the operations of the Kyzyl-Tashtygsky Mining and Processing Plant in the Republic of Tuva, owned by Lunsin. The facility, which employed around 1,200 local workers, will officially enter downtime on June 1, 2025, with the reason cited as employer-induced suspension.
Simultaneously, China has introduced new export restrictions that complicate the delivery of equipment, machinery, and chemical substances to Russia. As of December 1, 2024, an expanded list of dual-use items subject to export control has come into effect. This list includes IT equipment such as servers and components, as well as argon gas used in welding.
Chinese exporters are now required to provide detailed information about the end recipient and obtain special licenses, significantly complicating the process of conducting transactions.
Previously, in 2023, China had dramatically increased the supply of machinery, microelectronics, and other technologies to Russia—essential for the production of missiles, tanks, and aircraft. According to U.S. intelligence estimates, about 90% of Russian microelectronics imports came from China, and nearly 70% of imported machinery—worth around $900 million—also originated from Chinese suppliers.
However, the new restrictions and financial transaction difficulties signal a shift in China’s approach to cooperation with Russia under growing international pressure and sanctions.
Earlier we wrote that China cuts U.S. dependence, boosts exports to EU and ASEAN.