Chinese banks have stepped up checks on payments from India, the UAE and Hong Kong, looking for traces of Russian companies in them.
Points of attention
- Chinese banks have intensified checks on payments made by Russian companies through India, the UAE, and Hong Kong, in response to pressure from the US and other allies of Ukraine.
- The restrictions on money transfers by major Chinese banks like Bank of China and Chouzhou Commercial are aimed at avoiding secondary sanctions and preparing for potential changes in US administration.
- Russian companies are encountering difficulties in conducting financial transactions through Chinese banks due to their involvement in trade conflicts and the legal addresses coinciding with sanctioned entities.
- Credit bureaus are analyzing shipping documents and directing goods delivery to ensure compliance with the stringent checks imposed by Chinese banks, further complicating the payment process.
- The situation is not expected to improve in the near future, as Chinese banks are tightening control measures in anticipation of potential changes in US leadership, particularly Donald Trump's possible return to power in 2025.
What is known about Chinese banks blocking payments of Russian companies
As noted by the Russian mass media, it is becoming more and more difficult to make a payment. Credit bureaus analyze shipping documents, the direction of delivery of goods.
According to Oleksiy Razumovskyi, the commercial director of Impayu Rus, previously similar enhanced checks were introduced for transfers through Turkey and the CIS countries, but they have now been extended to other countries as well.
Ilona Gorsheneva-Dolunts, the representative of Opora Russia in China, confirmed this. According to her, banks demand that the goods be shipped to the country where the money came from.
With the help of strengthening control, organizations try to avoid secondary sanctions, explained the general director of the company Atvira, an expert practitioner of the EZ, Kateryna Kizevych.
Chinese banks are "tightening the nuts" before Donald Trump comes to power, so the situation will not improve in 2025, warned Oleksiy Poroshyn, CEO of Persha Grupa JSC.
He reminded that Trump declared a trade war with China a long time ago and local banks will not take any risks in order not to give the new American administration a reason for sanctions.
Russian companies have faced the blocking of accounts in major Chinese banks because their legal addresses coincide with those of organizations under sanctions.
What is known about restrictions on money transfers by Chinese banks
First of all, we are talking about the decisions of large Chinese banks — Bank of China and Chouzhou Commercial.
It is important to understand that the decision of the Chinese banks is the result of pressure from the US and other allies of Ukraine.
