A vendor fixes his fur products in front of his shop in Yabaolu, which is known as Beijing's Little Russia. [Photo by Wang Jing / China Daily]

International sanctions forcing some businesses in neighborhood to close, writes Erik Nilsson.

Beijing's "Little Russia" is facing big problems.

Far fewer Russian traders are coming to buy wholesale at the area's fur market, the very reason the ethnic enclave in Yabaolu exists in the Chinese capital.

Those who work in the neighborhood say that's because of the economic bite of US and EU sanctions - which have stung the Russian economy and made it impossible for Russians to use many credit cards - a clampdown on "gray Customs" smuggling Russia initiated in 2009, and rumors that the market will be demolished for redevelopment and relocated to Hebei province.

"Previously, 80 percent of our customers were Russian," says Li Baoqi, general manager of the Russian restaurants Elephant and Mango.

"Now, 40 percent are Russian, 20 percent are Chinese and 20 percent are other foreigners."

Li worries about the reduction in traders' visits, the lifeblood of Beijing's Russiatown. (Proportionally, very few Russians actually live in the district.)

"I hope more will come," he says.

"Their economic impact on Yabaolu is huge. Many (Russian) restaurants here have closed."

Elephant is just below the recently shuttered Sim Sim, an upscale Russian karaoke club that offered 1,500 yuan ($245) annual memberships.

Ukrainian Vlad Shlykov, who came with his compatriot band Elite 10 months ago, says Russian restaurants' performers are finding it harder to find gigs.

"Business is down," the 34-year-old says.

"Every Russian club in Yabaolu has few people."

He points out Mango is doing better than most, partly because many Chinese patronize the establishment.

The Las Vegas club also recently closed. That leaves only one Russian nightclub in the area and the city, Chocolate.

"Three years ago, there were more Russians in Chocolate," Ukrainian manager Damon Kukharenko says.

"Every year, more Russian people near here have relocated to other cities, like Shanghai and Guangzhou. They say the (fur) market will be knocked down to build upgraded buildings in 2015.

"Now, Chocolate has more Chinese people than Russians ... Chinese men like beautiful Russian girls. They want to see Russian girls, and maybe meet and talk with them."

The 24-year-old believes the decline in traders visiting Yabaolu will hurt the local economy.

"For Chinese people, having Russians here means a lot of money because Russians come to China and buy a lot of things."

But fur market venders are hopeful a recent drop in global fur prices may bring more Russians to Yabaolu.