Due to the refusal of large Chinese banks to finance russian transactions, some Chinese companies have begun using small banks at the border, as well as illegal financial methods, including money brokers and cryptocurrency. This is reported by Reuters with reference to its own source, UNN writes.
Details
One of the Chinese manufacturers of household appliances told the publication that it faced difficulties in supplying its products to russia due to the restrictions of major Chinese banks on payments. He noted that the firm is considering using currency brokers at the China-russia border to make payments for electrical goods.
Reuters reminds us that the United States imposed sanctions on russia after its full-scale invasion of Ukraine in 2022. Now there is a threat of extending these sanctions to Chinese banks, which, according to the United States, are facilitating moscow's military actions. This makes it much more difficult to finance even non-military trade between China and russia, creating serious problems for small Chinese exporters.
According to Reuters, in response to the refusal of major Chinese banks to finance transactions with russia, some Chinese companies have begun to resort to small banks at the border and illegal financial channels, including money brokers and banned cryptocurrencies. Other companies have decided to leave the russian market entirely, the sources said.
Chinese manufacturers say that it now takes large banks several months, not days, to process payments from russia. Therefore, they are forced to use non-standard payment methods or reduce the volume of their business.
Recall
80% of russian payments to China are returned to russia, as major Chinese banks, including ICBC, have stopped accepting Chinese yuan from russia due to US sanctions.