Chinese banks halt payments from Russian importers amid sanctions concerns
Several Chinese banks have started refunding payments for goods already delivered to Russian importers by their Chinese business partners, reports Vedomosti, citing four businessmen who have encountered this issue recently.
Russian business representatives have yet to determine the reasons behind the payment rejections in Chinese banks. One source suggested that the issue might be related to compliance checks. However, these incidents are becoming increasingly common.
The payment problem appears to occur when a Chinese supplier ships goods to a Russian importer under conditions of partial prepayment, with the remaining balance due within five days of shipment.
While China has not sanctioned specific categories of Russian goods, its banks risk secondary restrictions for facilitating payments on categories deemed sanctionable by the United States and the European Union.
In July, reports indicated that, from the start of the Ukraine invasion in February 2022 through the first half of 2024, 494 companies from 57 countries fell under U.S. secondary sanctions. More than half of these cases involved electronics and industrial goods and equipment under U.S. export controls. The countries most affected by these sanctions include China, the UAE, Turkey, Cyprus, and Switzerland.