Chinese Banks Restrict Financing for Russian Transactions
Major Chinese banks are cutting off financing for transactions related to Russia. Some Chinese companies are turning to underground financing channels, such as currency brokers on the border, and even to banned cryptocurrencies. This was reported by RBK-Ukraine, citing Reuters.
The United States has imposed a series of sanctions against Russia and Russian organizations since the invasion of Ukraine in 2022. Currently, the threat of extending these measures has expanded to banks in China.
This creates a problem for small Chinese exporters, reported seven trading and banking sources familiar with the situation to Reuters. Others have completely withdrawn from the Russian market, the sources say.
«You just can’t conduct business properly using official channels,» said Wang, founder of a Chinese company from Guangdong. Now major banks require months, not days, to process payments from Russia, forcing him to use unorthodox payment channels or reduce his business.
A manager at a major state bank, with whom he had collaborated in the past, told Wang that the lender is concerned about potential U.S. sanctions on Russian transactions.
