THE IMPACT OF CHINA’S ENVIRONMENTAL REQUIREMENTS ON FOREIGN TRADE CONTRACTS WITH RUSSIA: THE NEW REALITY OF ESG STANDARDS

Abstract

The article emphasizes that China remains Russia’s key foreign trade partner in the international arena. However, despite the strategic rapprochement, bilateral trade volumes have decreased in 2025. According to the General Administration of Customs of the People’s Republic of China, trade turnover decreased to USD 228.1 billion. This is lower than in 2023 and 2024. The authors explore the reasons behind this trend. Special attention is paid to the implementation of ESG standards in China, which has an impact on Russian exporters. Since 2026, Russian companies operating in Asian markets have been required to confirm the carbon footprint of their products. The authors analyze the legal implications of China’s mandatory procedures for declaring the carbon footprint of products and ESG reporting in foreign economic transactions involving the Russian Federation. Based on an analysis of the current legislation of the People’s Republic of China and expert assessments by Russian specialists, the study examines changes in the sections of contracts related to the subject of the transaction and guarantees focused on exports/imports with China. It explores the legal nature of carbon footprint statements under the 1980 Vienna Convention. The study proposes the classification of “green camouflage” as a serious violation of contractual obligations. It also identifies a list of documents that are crucial for the proper implementation of international trade agreements. The article concludes that there are increased requirements for the prudence of foreign economic activity participants focused on the Asian market. The authors conclude that in order to maintain and develop partnerships with China, Russian companies need to adapt to new environmental standards in a timely manner, implement low-carbon technologies, and ensure transparency in corporate reporting. The article also provides an overview of scientific publications on ESG regulation and sustainable development in the context of Russian-Chinese cooperation.