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 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.
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.
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.
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