November 21, 2024
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Ukraine News Today

Chinese banks began blocking payments to Russian companies through India, the UAE and Hong Kong

Banks in China have strengthened checks on payments from India, the UAE and Hong Kong, trying to detect “Russian traces” in them.”, — write: www.ukrinform.ua

Banks in China have strengthened checks on payments from India, the UAE and Hong Kong, trying to detect “Russian traces” in them.

This is reported by The Moscow Times, Ukrinform reports.

Representatives of Russian business said that making payments is becoming more and more difficult: credit organizations analyze shipping documents – to whom the goods are going, where and why. Before that, such enhanced checks were introduced for transfers through Turkey and the CIS countries, but now they have spread to other states.

The representative of Opora Russia in China, Ilona Gorsheneva-Dolunts, confirmed this, adding that banks demand that the goods be shipped to the country where the money came from. By strengthening control, organizations try to avoid secondary sanctions.

Read also: USA – China: It is not possible to declare support for peace in Ukraine and fuel war at the same time Another Russian business representative, general director of JSC “Pervaya Gruppa” Oleksiy Poroshyn, says that Chinese banks are “tightening the nuts” before Donald Trump comes to power, so the situation will not improve in 2025. Trump previously declared a “trade war” with China, and local banks will not take any chances to avoid giving the new US administration a reason for sanctions.

However, there are still options for sending payments to China, Poroshyn says. So, for example, as before, there are direct transactions from regional Russian banks to Chinese banks. Payment is also made through Malaysia and Indonesia. Another scheme is direct payments through a branch of a Russian bank to China. However, for this you need to have open accounts with this financial organization. If they are, then the money reaches the supplier in two or three days, and the bank takes a fixed fee for the transfer of 4%.

Earlier it became known that Chinese banks started blocking accounts of Russian companies due to the fact that their legal addresses coincide with the addresses of organizations that are under sanctions.

Problems with payments from Russia began as early as 2022 due to sanctions for the war in Ukraine. From December 2023, banks from “friendly” countries began to additionally strengthen approaches to work with Russian companies due to the decree of the President of the United States, according to which foreign banks may be subject to restrictions for assisting in transactions with sanctioned persons from Russia and facilitating supplies to the Russian defense industry. In July 2024, the US strengthened sanctions, including all Russian sanctioned entities, including banks, in the definition of a military-industrial base.

Read also: Russia’s help with drones will have consequences from the EU for Iran and China – Burbok As reported by Ukrinform, the last of the large state-owned banks in Russia, Gazprom, which retains access to the SWIFT system and payments in major world currencies, will become the object of new US sanctions.

Photo: Getty Images

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