As of: February 14, 2024, 5:16 a.m
By: Sonja Ruf
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A branch of the Chouzhou Commercial Bank in eastern China: The bank that will no longer conduct financial transactions with Russian customers in the future.
© Imago/NurPhoto
A major Chinese bank has stopped its payment transactions with Russia.
In Moscow, however, people are confident that all problems could be solved “among friends”.
Yiwu - China has never openly criticized Russia's 2022 invasion of Ukraine led by Vladimir Putin.
In the political field, the Russian President and Chinese leader Xi Jinping have always demonstrated unity.
In the economic sphere, both autocracies became even closer last year: an increased exchange of goods between the two countries contributed to an increase in their annual sales in 2023.
Headlines are currently circulating about potential tensions between Beijing and Moscow on the financial market.
According to news portal
Newsweek,
Zhejiang Chouzhou Commercial Bank has suspended all transactions for customers from Russia.
Zhejiang Chouzhou Commercial Bank is a larger Chinese bank that is only slightly affected by Western sanctions.
This made it a popular financial institution for Russian entrepreneurs – to this day.
Perhaps both of them will soon feel less like laughing: Russian Deputy Foreign Minister Andrei Rudenko (m.) next to Russian Foreign Minister Sergei Lavrov (r.).
© Imago/Itar-Tass
Russia: Completely isolated from the Western capital market and dependent on China
The times hit Russia in a situation in which it is almost completely cut off from the Western capital market and is dependent on China as a trading partner.
Russian Deputy Foreign Minister Andrey Rudenko denied that his country is facing problems involving payments between China and Russia.
However, he confirmed that some Chinese banks are holding back from investing in Russia due to fears of sanctions.
However, he was “confident that this problem will be solved,” he told the Russian state news agency
Tass
.
The senior diplomat referred to the growing trade volume between Beijing and Moscow.
Kremlin spokesman Dmitry Peskov made similar comments on the matter last week, saying Moscow was conducting "a close dialogue with our Chinese friends, and of course we will solve any problems that arise."
The reason: Zhejiang Chouzhou Commercial Bank feared US financial controls
The decisive factor for the suspension of payment transactions with Russia was the announcement of expanded US financial controls and the associated risk of sanctions.
Several large Chinese banks had previously restricted access to Russian partners.
The Chinese payment system UnionPay, comparable to MasterCard and Visa, also withdrew from Russia.
(Sonja Ruf)