Chinese banks again block payments to Russia following tougher US sanctions
www.pravda.com.ua
Thu, 30 Jan 2025 19:24:22 +0200
The tightening of US financial sanctions, which at the end of 2024 affected Gazprombank, one of the few major Russian lenders, and in 2025 affected dozens of intermediary companies that supplied goods bypassing restrictions, has caused a new wave of problems in payments to China.
Source Russian online newspaper The Moscow Times with reference to Bloomberg Details Top managers of two Russian raw materials exporters said that crossborder payments, particularly in yuan, are again being hampered by Chinese banks.
Chinese credit institutions are concerned about the recent actions of the former Joe Bidens administration and are demanding more time to analyse transactions, report The Moscow Time sources.
In addition to the financial sanctions imposed on 50 Russian banks, the US Treasury Department has blacklisted about 100 companies, including Chinese ones, which it accused of violating restrictive measures against Russia.
In addition, Kyrgyzstans OJSC Keremet Bank, which, per US data, made foreign currency payments to Promsvyazbank PJSC, a stateowned, formerly private Russian bank that is the backbone of the Russian defence industry, was subject to blocking sanctions.
Tougher Western sanctions led to a drop in Russian exports at the end of 2024.
In OctoberDecember, the economy earned US99.6 billion from exporting goods abroad, which is 7 less than last years fourth quarter.
In December, exports declined 19 yearonyear to US31.3 billion, and the trade surplus shrank to US5.6 billion, the lowest since 2020.
Background China and India stopped trading in Russian oil after US sanctions caused a sharp rise in tanker freight tariffs.
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