Since the Ukraine war, the relationship between China and Russia has become increasingly closer. But when it comes to money, the friendship apparently ends.
In order to avoid US sanctions, more and more important banks in China are now restricting transactions to Russia. The decision is no coincidence: Last December, US President Joe Biden tightened the thumbscrews on institutions that enable transactions that support the military-industrial complex in Russia and thus Putin's war machine. The withdrawal of Chinese banks is the biggest, but not only, problem in the Russian financial market. Financial institutions in the United Arab Emirates, Turkey, and Austria are also withdrawing from Russia due to fears of sanctions. The Zhejiang Chouzhou Commercial Bank had already withdrawn from financial transactions with Russia in February. The institution was previously popular with Russian businessmen because of its lax approach to Western sanctions.