The Limited Times

Now you can see non-English news...

Disaster for Russia: China's largest bank leaves Putin hanging

2024-02-22T04:24:24.910Z

Highlights: Three out of four major Chinese state banks will no longer accept payments from sanctioned Russian financial institutions. The trigger was apparently the twelfth sanctions package against Russia, which the EU decided in December 2023. Exports from China to Russia could stall until at least March. United Arab Emirates (UAE) banks close Russian accounts. Signs that Russia is on the verge of an economic downturn are likely to be increasing, says Bona Hyun.Disaster for Russia: China's largest bank leaves Putin hanging.



As of: February 22, 2024, 5:13 a.m

By: Bona Hyun

Comments

Press

Split

China is actually considered a loyal ally of Putin.

But gradually more and more Chinese banks are allowing the Russian president to appear.

Moscow – The Western sanctions against Russia are apparently worrying China.

As a result, there could be tension between Russia and Beijing, one of Vladimir Putin's most important trading partners.

Three out of four major Chinese state banks will no longer accept payments from sanctioned Russian financial institutions, Russian daily

Izvestia

reported on Wednesday (February 21).

Concerned about the consequences of the Russia sanctions?

China's banks end payment transactions

These are the Industrial and Commercial Bank of China (ICBC), the China Construction Bank and the Bank of China.

The three banks have stopped transactions since the beginning of 2024, Alexey Poroshin, general director of investment and consulting company First Group, told

Izvestia

.

According to

Wirtschaftswoche,

the Industrial and Commercial Bank of China (ICBC) is considered the largest bank in China (as of December 2023).

As

Business Insider

reported, the three banks informed their Russian customers of the decision in January.

The trigger was apparently the twelfth sanctions package against Russia, which the EU decided in December 2023.

At the same time, the United States imposed secondary sanctions on foreign institutions that might support the war.

The sanctions against Russia are worrying important trading partners of Moscow.

More and more banks are letting Putin run afoul.

© Alexander Zemlianichenko/dpa (archive image)

EU approves twelfth sanctions package against Russia – China’s banks react

Background: The core of the twelfth EU sanctions package are new import and export bans, such as the ban on the export of Russian diamonds to Europe.

In addition, the sanctions list will be expanded and assets of over 140 additional natural and legal persons will be frozen.

Shortly after the death of Alexey Navalny, further sanctions were imposed against Russia by the EU on Wednesday (February 21).

In addition to the three Chinese banks, Zhejiang Chouzhou Commercial Bank also wants to stop doing business with Russia.

One reason could also be the fear of Western sanctions on Chinese banks.

The bank recently informed its customers about the termination of relations with all Russian and Belarusian organizations, as customers told the newspaper

Vedemosti

 .

“We have already canceled several transactions,” a company owner confirmed to Wedemosti.

More and more Chinese banks are exposing Putin because of sanctions in the Ukraine war

There were fears of an immediate “logistics collapse.” Exports from China to Russia could stall until at least March, the source added.

The bank is said to have previously informed another businessman who buys machine tools in China that payments for certain products subject to an import ban due to Western sanctions had been suspended.

My news

  • Largest German heating manufacturer is abolishing gas heating systems: Will Habeck's law be a success? read

  • German family business files for bankruptcy - 150 employees affected read

  • This is how much less pension statutory insured pensioners will receive from March reading

  • “Citizen money is a crime against our children” – Hard traffic light billing

  • The richest Germans in the ranking: New face moves to first placeread

  • Bad news for Bavaria: Unemployment is rising more significantly than in other federal states

Russian Deputy Foreign Minister Andrey Rudenko on Friday (February 9) denied alleged problems in payment transactions between China and Russia.

Rudenko admitted that some Chinese banks are holding back from investing in Russia for fear of sanctions.

However, he told the state news agency

Tass

that he was “confident that this problem will be solved.”

United Arab Emirates (UAE) banks close Russian accounts

In response to the secondary sanctions, several banks in the United Arab Emirates (UAE) have also restricted payment transactions with Russia and started closing accounts of Russian companies and individuals.

There are many companies in the UAE that trade in Russian oil.

Many UAE banks no longer want to accept money from Russia and are refusing repayments.

This was reported by

Vedemosti

, citing three businessmen working in the UAE and a representative of the Business Russia business association.

Tax and legal advisors are also said to have confirmed the events.

One of them explains in the newspaper that transfers are not credited.

Instead, they would be returned to the senders.

According to him, some banks have begun to require explanatory documents for almost every transaction or refuse payment without giving reasons and close the account.

Signs that Russia is on the verge of an economic downturn are likely to be increasing.

(bohy)

Source: merkur

All news articles on 2024-02-22

You may like

Trends 24h

News/Politics 2024-04-18T09:29:37.790Z

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.