US Sanctions Force Chinese Banks to Halt Payments to Russia
Increased US sanctions targeting Gazprombank and numerous intermediary companies supplying Russia have severely impacted Russian-Chinese trade payments. Chinese banks, wary of US actions and potential violations, are delaying and scrutinizing yuan-denominated transactions, creating significant payment hurdles for Russian exporters. This cautious approach by Chinese financial institutions follows the blacklisting of approximately 100 companies, including some Chinese firms, for allegedly circumventing sanctions. The resulting payment delays and increased scrutiny contributed to a 7% decline in Russian exports during the final quarter of 2024.
John Q. Hosedrinker