Regional Chinese banks have begun to refuse to accept payments from the Russian Federation
In recent weeks, the settlement situation between Russia and China has deteriorated significantly. This was a real blow to many Russian companies that relied on Chinese partners to supply goods and equipment. General Director of First Group JSC Alexey Poroshin said that even small regional banks in China began to refuse to accept payments from Russia, despite the fact that back in May-June they were actively working with Russian business. This trend is confirmed by other representatives of the business community, Izvestia writes.
At first glance, one might assume that small regional credit institutions in China are less susceptible to international sanctions and, therefore, can continue to interact with Russian clients. However, as Ekaterina Kizevich, an expert and practitioner in foreign economic activity, points out, the main reason for the current restrictions is concerns about possible restrictions from the United States. As a result, more than 98% of Chinese banks, including regional ones, refuse to accept direct payments from Russia.
This situation creates serious problems for Russian companies that depend on imports of goods from China. Alexey Razumovsky, Commercial Director of Impaya Rus, warns of possible disruptions in supplies and rising prices for goods. Russian entrepreneurs are facing increasing difficulties when trying to make purchases in China, and the problem of “clean” yuan has become more pressing than ever before.
Despite the current situation, there are ways for Russian companies to continue their financial transactions with China. Alexey Poroshin noted that over the past three weeks, there has been a significant increase in the number of applications for the services of payment agents who carry out transactions through third countries. This allows them to bypass restrictions and continue cooperation with Chinese partners.
In addition, Russian businesses have begun using Hong Kong banks to send payments to China. Hong Kong, as a special administrative region of the PRC, has more flexible financial regulations, which makes it attractive for such transactions.