Chinese regulators refuse to impose sanctions on Russia for invading Ukraine

March 2 (UPI) -- Officials in China, perhaps Russia's most valuable ally, said on Wednesday that they will not follow other nations in leveling stiff economic sanctions against Russia for its invasion of Ukraine.

Beijing's banking and insurance regulator made the announcement, saying that other nations that have sought to isolate Moscow economically -- including the United States, the European Union and famously neutral Switzerland -- have erred in their response.

"We do not agree with sanctions, especially sanctions launched unilaterally, because they are not effective and have little legal basis," Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, told reporters on Wednesday.

"We will not participate in such sanctions, and we continue to maintain normal economic and trade and financial exchanges with the relevant parties," Guo added.

Russian President Vladimir Putin and Chinese President Xi Jinping pose for a picture during a meeting in Beijing, China, on February 4. Photo by Alexei Druzhinin/Kremlin/Sputnik/Pool/EPA-EFE

China, a major importer of Russian oil and gas, announced last week that it had lifted wheat import restrictions, a move viewed by some as an economic lifeline for Moscow.

Instead of pursuing sanctions, China has called for a diplomatic resolution to the crisis in Ukraine -- and has so far refused to condemn Russia for starting the fighting.

Guo also said Wednesday that global sanctions against Russia have not made a noticeable impact on the Chinese economy, and he doubted that they would be felt strongly going forward.

"We don't think [Russia sanctions] will have much impact in the future because our economy and financial sector are very stable and resilient," he said.

Some analysts have likened the Russia-Ukraine situation to China's relationship with Taiwan, a self-declared independent island that Beijing also claims as a breakaway territory.