Regional banks in China, which are mainly focused on the domestic market, have become alternate airports for companies from Russia for several months in a row.
Small regional banks in China began refusing to accept payments from Russia. This was reported by The Moscow Times on Monday, August 12.
In May-June, local credit organizations worked with Russian businesses and payments were more or less stable, but since July 20, payments actually stopped.
It was noted that more than 98% of Chinese banks refused to accept direct transactions from Russia. This can lead to problems in the supply of goods in Russia and an increase in prices.
Regional banks in China, which are mainly focused on the domestic market, have become alternate airports for companies from Russia for several months in a row. Now Russian business is trying to pay through third countries.
Over the past three weeks, the number of applications from existing payment agents conducting transactions through third countries has increased several times.
Often, companies from Russia send payments to China through Hong Kong banks, but some credit institutions in China refuse to cooperate with them.
In addition, many Chinese companies do not accept money from branches of Russian financial organizations.
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, Andrei Pyshny, said that the new US sanctions dealt a heavy blow to Russia’s financial infrastructure.
Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.