China's imports of Russian coal hit a five-year high in August, the latest hint Beijing is throwing Moscow an economic lifeline as it confronts international sanctions over its assault on Ukraine.
According to figures released on Tuesday by the General Administration of Customs, shipments of Russian coal hit 8.54 million tonnes last month amid rising energy consumption in the second-largest economy in the world as a result of the excessive heat.
The amount of trade was the largest since officials started compiling statistics in 2017, up 57% from the same time the previous year, Aljazeera reported.
China and Russia said earlier this year that their friendship has "no limits." Since Russian President Vladimir Putin ordered his troops to invade Ukraine in February, their economic cooperation has expanded.
As a result of the nation's rising need for gas, coal, and oil, China's purchases of Russian goods increased by 60% to $11.2 billion in August.
Chinese exporters have also increased their exports to Russia, with trade volume increasing by 26 percent year to year to $8 billion last month.
According to Nikkei Asia, China's imports of coal from Russia increased in August to their highest level in at least five years as power utilities in the world's largest coal user sought foreign supplies to fulfill skyrocketing demand, caused by the extremely hot weather.
General Administration of Customs statistics reveals that last month's coal imports totaled 8.54 million tonnes, up from 7.42 million tonnes in July and 57% more than in the same period last year. Since comparable figures started in 2017, the monthly figure was the highest.
Economic Ties Going Stronger
In the first eight months of 2022, the two countries' bilateral commerce increased by more than 31% to $117.2 billion.
As Europe stopped buying from Russia after it committed tens of thousands of troops into Ukraine, causing Russian coal to be traded at a significant discount, imports from Russia have increased recently, per Reuters.
According to dealers, prices for Russian coal increased as both China and India increased their purchases, but the country's domestic coal remained more affordable.
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In late August, the price of Russian thermal coal with a 5,500 kcal energy content on a delivery basis to China increased to around $155 per tonne from about $150 per tonne the previous month.
Coal-fired power facilities ramped up output when severe drought and heatwave hit western and southern China starting in late July to meet the surge in demand for air cooling and the supply shortfall from hydropower plants.
To strengthen the effectiveness of power production, they also expanded their imports of higher-grade thermal coal, such as Russian coal.
China, Russia Got Each Other's Backs
Due to the quiet withdrawal of several Chinese state-owned financial institutions from Russia in recent months, China is widely believed to be reluctant to openly violate sanctions against Russia out of concern for losing access to Western export markets and the US dollar-centric international financial system.
Beijing has refrained from denouncing the invasion and has blasted Western-led sanctions against Moscow while having emphasized its desire for talks and a negotiated settlement.
Putin expressed gratitude for "our Chinese friends' balanced approach in connection with the Ukrainian problem" during his first meeting with Chinese President Xi Jinping since the invasion last week.
Xi said China was willing to cooperate with Russia to "play a leading role in demonstrating the responsibility of major powers" and to "instill stability and positive energy into a world in turmoil" after the two leaders met on the sidelines of the Shanghai Cooperation Organization (SCO) summit in Uzbekistan.
