China has the power to end the Ukraine war

Western leaders are becoming increasingly frustrated by China’s role in enabling the war in Ukraine. Some have even openly threatened to sanction the country if it continues to provide Russia with the materials it needs to build more weapons.

And they are right to focus on China’s position of power. Russia is now so dependent on the only major economy still taking the risk to support its regime, that China could effectively force Vladimir Putin to end the conflict.

The extent of Russia’s economic dependence became apparent fairly quickly after its full-scale invasion of Ukraine in February 2022. Just a few months later, things were not going to plan.

In the hope of putting pressure on European countries supporting Ukraine, Russia decided to cut almost all of its exports of gas to the West. Before the war, Russia had provided about 40% of Europe’s gas.

While at first that decision provoked an energy crisis and a surge in bills across the continent, Europe eventually managed to wean itself from Russia’s supply. They did this in part by replacing gas with other sources of energy but also by substituting Russian imports with gas from other countries, including the US.

Electricity prices in Europe are now roughly back to pre-war levels. And while gas prices are still high, they have dropped, with storage facilities expected to be almost full later this year.

So now Russia faces a massive problem of its own: selling its gas.

For the first time in over 20 years, the Russian state-owned energy giant Gazprom sustained a financial loss in 2023. Until then, the customs and tax revenues from the company contributed around 10% of the country’s budget.

Revenue from oil exports has also decreased. As Western countries have banned