External Trade: The Roles of the EU, of the Eurasian Economic Union and of China

Russia’s external trade remains dominated by the quasi-colonial pattern of raw material exports traded for processed imports, as evidenced here with its major partners, the EU and China. The chapter demonstrates that the Kremlin’s stated objectives of autarchy and import substitution have not made a difference, except to create a new class of politically privileged manufacturers at the expense of the rest of the economy. Further, the very limited role of the Eurasian Economic Union is being analyzed. It appears stymied by the constraints of intergovernmentalism and the justified fear of Russian domination on part of its weaker members. The reverse is true in unequal Chinese–Russian trade relations, as the chapter demonstrates growing Chinese economic and political might with a stagnating Russia turning into the role of a resentful junior partner of interest to the Chinese mainly for its untapped Siberian riches. Aa an unsustainable relationship, the chapter concludes.