According to the latest data from the Shanghai Customs,in April 2024,the export trade volume of Shanghai to Russia amounted to $33.3 million,a year-on-year decrease of 19%.This decline,following a 21.7% drop in exports to Russia in March,reflected the profound impact of sanctions on trade between Shanghai and Russia.Due to the drag from March and April,the total export value to Russia in the first four months of the year amounted to $1.485 billion,a slight increase of only 2.2% year-on-year.In terms of RMB,the export trade volume to Russia in April 2024 reached 2.28 billion RMB,a year-on-year decrease of 16.5%.

Analysis indicates that this downward trend is closely related to Executive Order 14114,issued by the United States on December 22,2023.The order expands sanctions authority over foreign financial institutions that facilitate "significant transactions" related to Russia’s military-industrial base and allows the U.S.to sanction banks assisting in the sale of certain "critical items" to Russia.Following the issuance of the executive order,many international banks tightened trade settlements with Russia to mitigate risks.This directly led to difficulties in settling trade between China and Russia,thereby impacting actual trade volumes.

As an important international trade hub in China,the decline in Shanghai’s trade volume with Russia reflects the profound impact of sanctions on economic and trade exchanges between the two countries.In April 2024,Shanghai’s export trade volume to Russia was $33.3 million,a year-on-year decrease of 19%.This figure had already seen a 21.7% drop in March,indicating a significant decline trend for two consecutive months.Due to this impact,in the first four months of 2024,Shanghai’s export amount to Russia only increased slightly by 2.2% to $1.485 billion.

The trade volume measured in RMB is equally worrying.In April 2024,Shanghai’s export trade volume to Russia reached 2.28 billion RMB,a year-on-year decrease of 16.5%.This downward trend not only puts pressure on Shanghai’s exports to Russia,but also has a negative impact on the overall economy.

Sanction implementation has made China-Russia trade settlements more complex and difficult.Many international banks tightened Russia-related settlements post-order,causing payment and settlement difficulties for Shanghai exporters,further hindering trade growth.

This situation directly affects Shanghai exporters and poses new challenges for the financial system.Banks must exercise extreme caution in Russia-related transactions to avoid sanctions violations,increasing transaction costs and timelines while compressing corporate profit margins.

Facing sanctions and settlement difficulties,Shanghai companies must adopt multiple strategies.First,strengthen research into sanction policies to ensure compliance.Second,diversify market presence to reduce single-market dependence.Third,enhance communication with banks to identify secure settlement channels.

Additionally,companies can explore cooperation opportunities in non-sanctioned sectors like agriculture,healthcare and education to expand trade depth and breadth.