The situation with payments from the Russian Federation to China worsened significantly at the end of March. About 80% of transactions are reversed.
Several Chinese banks, including China’s largest ICBC, as well as China Citic Bank, Industrial Bank and Bank of Taizhou, have stopped accepting payments in yuan from Russia. The Russian newspaper Izvestia writes about this on Wednesday, April 17.
A business source told the newspaper that the situation with payments from Russia to China worsened significantly at the end of March. About 80% of transactions have been reversed, he said.
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The difficulties are mainly related to China’s largest banks. According to him, payments continue to be made in small quantities, but mostly small Chinese financial organizations are now working in Russia.
General Director of the Business Council at the Chamber of Commerce and Industry (CCI) of the Russian Federation, Alexey Egarmin, confirmed the problems with payments. He clarified that special difficulties arise when paying for industrial products.
The new restrictions are linked to the risk of a second penalty. Despite China’s friendship with Russia, Chinese banks are not ready to enter full-scale confrontation with the West, experts say.
They believe that the Russian banking sector should look for alternative options, for example, launching new tools for sending payments. Now the operations are carried out through third countries – the money goes in rubles to a friendly state, and from a company not related to Russia, the yuan is sent to China.
We would like to remind you that earlier the main Chinese bank for importers from the Russian Federation, Chouzhou Commercial, informed clients about the termination of transactions in Russia and Belarus, regardless of the payment system.
China has not officially joined the sanctions against Russia in response to the war in Ukraine, but after the restrictions were introduced, Chinese banks reduced their work with Russian clients under the sanctions.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.