Banks in China, the UAE and Turkey have tightened their requirements to comply with US sanctions.
Russian oil companies face delays in crude and fuel payments as banks in China, Turkey and the United Arab Emirates become more cautious due to a second round of US sanctions. It was reported by Reuters.
The delayed payments reduce the Kremlin’s revenues and make it unstable, allowing Washington to achieve the dual goals of disrupting the flow of money to the Kremlin to punish it for the war against Ukraine and without disturbing the international energy flow.
In recent weeks, banks in China, the United Arab Emirates and Turkey have tightened their requirements to comply with the sanctions, leading to delays or even denials of money transfers to Moscow. Banks began to require their clients to provide written guarantees that no individual or entity on the US SDN (Special Designated Nationals) list was involved in the transaction or was not a beneficiary of the payment.
In the UAE, First Abu Dhabi Bank (FAB) and Dubai Islamic Bank (DIB) blocked several accounts related to trading in Russian products.
UAE’s Mashreq Bank, Turkey’s Ziraat and Vakifbank, and Chinese banks ICBC and Bank of China still process payments, but they take weeks or months to process.
As we have already written, the result of Russia’s self-destructive gas war is a decrease in supply to Europe by 115 billion cubic meters, of which China is replaced by only 13 billion.
In addition, a five-year contract for gas transit from Russia to Europe through Ukraine expires in 2024. The EU has declared its intentions to get off the Kremlin’s “gas needle.”
Source: korrespondent
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