China suspended an unofficial subsidy for copper and nickel imports from countries including Russia, which has become more dependent on purchases by its Asian neighbor since western nations imposed sanctions after the invasion of Ukraine.
For years, Chinese state-owned enterprises could receive a rebate on purchases of copper and nickel from Iran, Mongolia and Russia. The size of the rebate was either a small percentage of the metal’s value, or a fixed amount, depending on market conditions.
The rebate has been removed in the latest tenders, which could make Russian metal less competitive, according to people familiar with the matter. However, the withdrawal of the subsidy is unlikely to substantially impact Russia’s massive metal flows, given Moscow’s reliance on Chinese buying, the people said, asking not to be identified because the matter is private.
The reason for the policy change isn’t clear, but the decision was made before President Vladimir Putin’s four-day visit to China in early September, the people said. During that trip, China’s President Xi Jinping cemented political and economic ties with Putin, including paving the way for increased Russian gas imports.
China’s Ministry of Finance did not respond to a request for comment.
Russian metals exports to China have surged since the Kremlin sent troops into Ukraine in 2022, resulting in international sanctions and trade restrictions. While some of the country’s biggest producers are not sanctioned by the US and its allies, new Russian supplies can no longer be delivered to the London Metal Exchange and the Chicago Mercantile Exchange and are subject to some trade restrictions.
Moscow’s growing dependence on China was evident in the first five months of 2025. Russian copper sales advanced 66%, while nickel imports more than doubled, according to Trade Data Monitor, which sources information from China’s customs office.
The abolition of the rebates comes as the nickel market remained oversupplied, with growth in Indonesian output fueled by Chinese investors. Copper trade flows this year have been skewed by massive shipments to the US in anticipation of tariffs, leaving inventories relatively low in the rest of the world. (By Julian Luk)
