Russia purchases hundreds of Chinese all-terrain vehicles made by Shandong Odes. The Purchase could stir up tensions between the US & China due to the off-road buggies from China are extremely popular with US farmers & powersport enthusiasts.

The purchase by Russia has heightened tensions between the US & China. President Xi Jinping’s backing of Moscow’s invasion of Ukraine has been a contention between Beijing & Washington, but China have insisted they are not selling military equipment to Russia, but the west is still concerned with sales from China to Russia of non-lethal equipment for use by the Russian military in Ukraine.

Back in November, Putin inspected the Shandong Odes Desertcross 1000-3 all terrain vehicle alongside the Chinese Defence Minister Sergei Shoigu who said the Chinese made buggy “was extremely in demand”. Social media footage has shown Russian soldiers using them in the field. The Russian military was already fielding 537 “basic” versions of Shandong Odes’s Desertcross 1000-3 and planned to buy another 1,500 with “additional options”

In a clear warning last month, US Treasury secretary Janet Yellen said Russia was “dependent on willing third-country individuals and entities to resupply its military and perpetuate its heinous war against Ukraine”. “We will not hesitate in holding them accountable,” Yellen said.

Russia’s use of the vehicles comes as Putin’s military increasingly turns to Chinese suppliers for equipment needed to maintain its invasion of Ukraine, and highlights the dilemma facing Chinese companies whose sales to Russia could expose them to retaliation from Washington as it deploys the non-armoured buggies in the field.

Shandong Odes who sells under the brand of Aodes in Europe & the US claim to have hundreds of dealers across the globe with more than a hundred Aodes licenced dealerships in the US, with the vehicles becoming very popular with ranchers, powersports enthusiasts and holiday makers, with the US version of the Desertcross 1000-3 which sells for approximately $20,000 being one of the most popular buggies.

European leaders have called on China to use its close ties with Russia to persuade it to withdraw from Ukraine. But Xi and Putin continue their close friendship and growing trade ties. China has insisted it is not selling military equipment to Russia, but Ukraine’s allies are concerned about sales of non-lethal goods useful for defence industries or the battlefield.

Chinese exports of lorries to Russia have surged, freeing Moscow’s domestic producers to focus on supporting the war effort. In January 2022, on the eve of the full-scale invasion, official Chinese data suggests Russia bought $32million worth of heavy goods vehicles and trailer trucks. In July, such imports peaked at almost a billion dollars. Last month, they were worth $378million.

Chinese lorry exports to Russia have surged since the outbreak of the Ukraine war

Monthly exports according to official Chinese trade data ($)

The US Office of the Director of National Intelligence said in July that China had “become an increasingly important buttress for Russia in its war effort, probably supplying Moscow with key technology and dual-use equipment used in Ukraine”.

Some Chinese equipment appears to have been sold to powerful figures involved in Putin’s invasion. In June, Ramzan Kadyrov, the strongman leader of Chechnya, posted a video showing eight unarmed China Tiger armoured personnel vehicles driving around his residence. The vehicles, which are made by Chinese defence contractor Shaanxi Baoji Special Vehicles Manufacturing, are designed for riot control and light combat rather than the heavy fighting seen in Ukraine.

Reportedly, the Shandong Odes buggies were entering Russia through motorsports retailers, giving Beijing “plausible deniability”. But if the shipments provoked a strong response from the US and its allies or worsened public views of China in western markets,

Only the future can tell if public perceptions will negatively effect sales of the Chinese made buggies, but Shandong Odes will hardly like to lose their lucrative market in the west for the sake of $3million+ deal with Russia.