Belt and Road Weekly Investor Intelligence #86

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This week is all about Russia, China, and Iran, as global geopolitics shapes future trade and supply chain structures. There are interesting developments with the regional trade aspect of the Shanghai Cooperation Organisation, Iranian Offshore Banking, and Russia turning to China for import substitutions for its previous EU import trade – now considered dead by Moscow.  We outline the business and investment policies Russia is setting out and end with our usual BRI global news roundup.

Shanghai Cooperation Organisation

Shanghai Cooperation Organisation Establishes Economic Cooperation Zones 

The China-Shanghai Cooperation Organisation Local Economic & Trade Cooperation Demonstration Area in Qingdao has attracted billions of dollars in investment and has raised a regional SCO investment fund.  

Russia-China

Russia Looking To Fast Track Chinese Product Replacement Alternatives 

The EU’s import future to Russia is regarded as finished, with import substitution planning now underway with China.

Iran

Russian Businesses Seek Trade Advice From Iran, Russia-Iran Exports Up 73% 

Despite sanctions, US products such as iPhones are freely available in Iran – meaning that while bilateral sanctions may inflict trade damage, third party resellers are always around. Chinese brands are also prevalent.

Iran-Afghanistan Railway Back On The Agenda 

Would link the industrial Afghanistan city of Herat to the INSTC.

Iran’s Central Bank Approves Establishing Offshore Banks In Free Trade Zones 

The benefits for foreign investors are the ability to bring in component parts, at no VAT exposure have them consolidated with Iranian components and complete a finished product at lesser costs. Iranian skilled worker wages are about US$240-400 per month, which is lower than China or Russia.

Russia

President Putin SPIEF 2022 Speech: Russia’s New Business & Investment Policies 
Belt & Road Initiative

China’s Belt & Road And Beyond      

All the latest global headlines about China’s Belt & Road Initiative.


About Us

Dezan Shira & Associates provide business intelligence, market research, legal, tax and compliance issues for foreign investors throughout Asia, and have 28 offices across the region. We are members of the Leading Edge Alliance, a network of related firms with offices throughout the world. For assistance with Belt & Road Initiative research, please contact us at silkroad@dezshira.com or visit us at www.dezshira.com. To subscribe to our Belt & Road Initiative portal, please click here.