China's three largest banks have stopped accepting payments from Russia
Large Chinese banks Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB) and Bank of China have suspended accepting payments from Russian financial organizations subject to sanctions, said the CEO of the First Group company Alexey Poroshin, the commercial director of Impaya Rus Alexey Razumovsky and a source close to the large business community.
These banks occupy leading positions in terms of assets in China. However, transactions with non-sanctioned Russian banks continue.
ICBC and CCB refuse to accept all payments from sanctioned banks regardless of the interbank transfer system used, be it SWIFT, Russian SPFS or Chinese CIPS, according to the representative Russian bank. Chinese banks explain such actions by internal company policies. Restrictions were introduced before the beginning of 2024.
According to Poroshin, the US-China trade balance significantly exceeds the trade turnover between Russia and China, which forces banks and state corporations to avoid risky transactions.
Expert Ilya Ivaninsky notes that the greatest difficulties arise when making payments with China through Western SWIFT system, but difficulties also arise with Chinese and Russian counterparts. He emphasizes that all transactions are ultimately reflected in bank statements, and if a financial organization has connections with colleagues from Europe and the United States, reporting becomes transparent.
Despite the difficulties, many large Russian banks have opened their representative offices in China, which simplifies the process of sending payments. For example, VTB representatives confirm that through its branch in Shanghai, the terms of settlements remain unchanged from the point of view of local legislation. VTB in Shanghai acts as an independent Chinese bank, making payments between the two countries in both currencies.