Chinese banks again block payments to Russia following tougher US sanctions
Pravda Ukraine
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 cross-border payments, particularly in yuan, are again being hampered by Chinese banks.
Chinese credit institutions are concerned about the recent actions of the former Joe Bidenʼs 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, Kyrgyzstan’s OJSC Keremet Bank, which, per US data, made foreign currency payments to Promsvyazbank PJSC, a state-owned, 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 October-December, the economy earned US$99.6 billion from exporting goods abroad, which is 7% less than last year’s fourth quarter.
In December, exports declined 19% year-on-year (to US$31.3 billion), and the trade surplus shrank to US$5.6 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.
Support UP or become our patron!