Reuters reports Chinese banks halt transactions with Russia ‘en masse’

Chinese banks are limiting transactions with Russia, as delays in payments increase due to escalating tensions and new U.S. sanctions against Chinese and Russian companies. Major Chinese banks are now blocking transactions for electronics, amidst fears of secondary sanctions, leaving billions of yuan in limbo. This adds to the mounting obstacles in Russian-Chinese economic relations, exacerbated by U.S. sanctions following Russia’s invasion of Ukraine. With Russia cut off from the SWIFT system, Chinese banks are rejecting a significant portion of Russian payments made in Chinese yuan, causing delays and financial challenges for businesses. In response, some Russian firms are using intermediaries in third countries to circumvent these restrictions, but face added time and costs in transactions. Additionally, banks in the UAE are rejecting transactions from Russian companies for electronic components and consumer electronics from China since early August. These developments demonstrate the complex economic landscape influenced by geopolitical tensions.

[ad_2]

Source link