In a recent development, UAE banks have ceased trade with Russian companies, impacting Russian businesses hit by the Ukraine invasion. Reports suggest that payments from Russian companies for Chinese electronics are being rejected by UAE banks to avoid US secondary sanctions.
With many countries refusing to engage in trade with Russia, Russian companies turned to UAE entities to purchase Chinese goods and transfer funds. However, Abu Dhabi has instructed domestic companies to only allow Chinese goods into the country, effectively blocking the use of UAE as a conduit for sales to Russia.
This crackdown follows tighter controls on companies dealing with Russian businesses, as concerns about secondary sanctions grow. Russia’s quest for consumer electronic goods from China, potentially convertible for military use, has faced hurdles due to China’s crackdown on dual-use item transactions.
Despite seeking military hardware from Iran and China, Russia’s strategies have been affected by global efforts to prevent the flow of dual-use goods. The situation underscores the complex web of international trade dynamics in the aftermath of geopolitical conflicts.