Russia and China may be sidestepping taxes and sanctions on Russian copper exports by disguising the copper as other commodities, according to an investigation by the Financial Times.
Copper Exports on the Rise
Russia’s copper exports to China have soared since the start of the war in Ukraine. In the first half of 2023, Russia exported 40% more copper to China compared to the same period last year.
Discrepancies in Trade Data
However, trade data shows discrepancies between Russian copper exports and Chinese imports. Chinese customs data shows that China imported significantly less copper from Russia than Russian customs data suggests.
Possible Disguised Exports
This discrepancy suggests that some Russian copper exports may be disguised as other commodities, such as copper alloys or scrap. This would allow Russia to avoid taxes and sanctions on copper exports, while China would benefit from lower-priced copper imports.
Impact on Global Copper Market
The disguised copper trade could have a significant impact on the global copper market. If Russian copper is being sold at lower prices, it could put pressure on prices of other copper producers. It could also lead to a shortage of copper if Russia’s disguised exports are not replaced by other sources.
Need for Further Investigation
Further investigation is needed to determine the extent of Russia’s disguised copper exports. The global copper market and its impact on other copper producers should also be taken into consideration.
Kind regards
E. Thompson
