China Changed Supply Chain Strategy With Russia 3 Months Ahead of Ukraine Invasion, Suggesting It Had Foreknowledge: Analyst

Around three months ago, China changed how it ordered goods from Russia in a way that would insulate Beijing in the event of Western sanctions on Moscow, according to a supply chain analyst citing insider information.

This move suggested that China had foreknowledge of Russia’s plan to invade Ukraine, and had made contingencies to ensure it could still import Russian commodities amid sanctions, he said.

In about November or December, China began buying all of their Russia-origin cargoes—grains, crude oil, and petrochemical products—on a “free on board origin” basis, meaning that China would hold claim to the goods as soon as they were loaded onto the ship, said Ross Kennedy, founder of Fortis Analysis. . .

In large shipments by sea, sellers, rather than buyers, would commonly assume responsibility for the goods until they are delivered to the purchaser, he said. They also typically cover the cost of shipping and insurance, and warrant that the goods will safely reach the destination. . .

“And the reason you would see that happening is because there is a fear that sanctions on products coming from a certain country, in this case, Russia, would impact those country’s ability to buy those products.” (Read more from “China Changed Supply Chain Strategy With Russia 3 Months Ahead of Ukraine Invasion, Suggesting It Had Foreknowledge: Analyst” HERE)

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