By refusing to open accounts for companies from other provinces, Chinese banks are playing it safe to avoid being subject to a second Western sanction.
Chinese banks impose restrictions on local companies that cooperate with Russia – they are prohibited from opening accounts outside their province. The Moscow Times wrote this on Monday, September 9.
According to one of the sources, a company from Sichuan province that supplies products to Russia tried to open a bank account in Shandong province, but it was rejected. The supplier of another Russian importer also encountered this problem.
Cases of refusal to open an account have become more frequent, but it is still difficult to assess the scale of what is happening.
Some Chinese banks began introducing similar territorial restrictions in April-May. At the same time, the bankers did not officially refuse: those who wanted were first asked to wait six months to open an account, and then the same amount, which was unacceptable for any company.
By refusing to open accounts for companies from other provinces, Chinese banks are playing it safe to avoid falling under a second Western sanction, experts say.
At the same time, they emphasize that the new restriction is a serious challenge for Russian-Chinese trade. Amid the rejections, suppliers are being forced to open new accounts with banks that continue to draw money from Russia. But finding new entities increases transaction costs and delays payments.
We remind you that one of the largest state-owned banks in China, the Bank of China, stopped cooperating with the Moscow Exchange after it was subjected to US sanctions.
The head of the National Bank of Ukraine, Andrey Pyshny, said that the new US sanctions dealt a heavy blow to Russia’s financial infrastructure.
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.