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Suppose, Russia cooperates with China.

  • Russia signs FTA with China
  • Russian banks start to operate in China and vice versa
  • Chinese companies open manufacturing plants in Russia and vice versa
  • Russia start to sell its defense products through Chinese franchises (say)
  • Russia start to use Chinese currency instead of US dollar
  • ... and so on

Can Russia escape its US-sanction in this way?

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    The problem is that Russia would then become a wholly-owned subsidiary of China. – jamesqf Sep 21 '17 at 18:49
  • Aren't there US sanctions on China? – user9389 Sep 21 '17 at 18:53
  • According to this there aren't any sanctions on China: treasury.gov/resource-center/sanctions/Programs/Pages/…. Probably there won't be any in the near future, considering the huge negative impact they would have on the US economy. – user16136 Sep 21 '17 at 19:35
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Theoretically speaking, yes it can try.

Practically speaking, that risks sanctions being slapped on either China, or at the very least, specific Chinese companies that are used to funnel Russia's goods and services.

This should deter "normal" Chinese companies that already do business with the West as they would likely prefer to avoid sanctions.

Additionally, any Western company must do what's called "due diligence" to avoid violating the sanctions (source: watching 30 minutes of sanctions compliance materials annually as required by my industry); and any company which is set up in China with express purpose of being a front for a Russian sanctioned company should be detectable by Due Diligence. Whereby, again, either the Western company detects it and declines; OR doesn't bother and gets slapped for sanctions avoidance.

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  • 1
    +1 for discussing the 'front' issue. Any company doing business with a sanctioned country knows the risks and probably sets up subsidiaries to try counter the backslash. Like they did with Russian Mir submarines. The subsidiary was brought down even though the country had not joined the embargo. – user16136 Sep 21 '17 at 19:31

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