China refuses to work with Russian financial institutions under US sanctions

Chinese banks have begun blocking payments from Russian credit institutions that have been subject to new sanctions imposed by the US Treasury Department.

Source: The Moscow Times

Details: Thus, the CEO of First Group JSC said that most Chinese banks have already ended their relations with them.

In addition, the commercial director of Impaya Rus confirmed that such banks as the Bank of China and the Bank of Kunlun have already stopped working with sanctioned organisations.

The Bank of Kunlun, which used to be frequently used by Russian importers for payments, has warned its customers that it will stop accepting payments.

In response to the pressure of sanctions, Chinese payment agents have become more active in Russia, offering circumvention schemes for making payments to China.

Some agents use "cargo" schemes, where payments to Chinese suppliers are made using non-transparent documents and goods are imported through grey schemes or smuggling.

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