Chinese Banks Reject Payments from Russian Importers in Key Industry

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China,Banks,Russian Importers

Chinese banks have started rejecting payments from Russian importers in a key industry, causing difficulties for traders in making payments for finished products. This comes as a result of U.S. secondary sanctions targeting institutions believed to be helping Russia's military-industrial base skirt sanctions.

China's banks have started rejecting payments from Russian importers in a key industry, a Russian newspaper reported Thursday.Chinese trade and financial inflows have helped buoy Russia's isolated economy since President Vladimir Putin's invasion of Ukraine two years ago, but the strategic partner's banks are increasingly skittish in the wake of U.S. secondary sanctions targeting institutions believed to be helping Russia's military-industrial base skirt sanctions.

Newsweek reached out to the Russian and Chinese foreign ministries via written request for comment outside office hours.Industry insiders have pointed to the looming threat of U.S. sanctions as a likely cause.'We, like all leading industry players, are under pressure from secondary sanctions and are working to mitigate their consequences as much as possible,' internet technology company Fplus told the newspaper.

 

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