When asked to comment on reports of problems with payments between the two countries, including transactions through the Financial Messaging System, he told reporters: “No, we don’t have such an issue. A couple of Chinese banks refrain so far as precaution, over fears [of being] sanctioned. But we are confident that this problem will be solved.”
“We have a close dialogue with our Chinese friends and, of course, we will solve all the problems that arise,” Kremlin spokesman Dmitry Peskov told reporters in a briefing call on Wednesday.
‘We’ve weathered many storms’: Xi, Putin vow deeper ties in Lunar New Year call
‘We’ve weathered many storms’: Xi, Putin vow deeper ties in Lunar New Year call
Russia’s Vedomosti business daily reported last week that Zhejiang Chouzhou Commercial Bank had informed clients that it had suspended all transactions with Russia and Belarus.
Chouzhou Commercial Bank is based in the eastern Chinese city of Yiwu, the world’s largest wholesale market of small commodities, and has been one of the main banks for Russian exporters, according to Vedomosti.
According to Russian Central Bank chief Elvira Nabiullina, a third of all Russian exports are now settled in renminbi.
Some of China’s major financial institutions have already announced plans to restrict ties with Russia since the invasion of Ukraine.
Bank of China, Industrial and Commercial Bank of China and two Chinese-led development institutions – the New Development Bank and the Asian Infrastructure Investment Bank – have all reportedly restricted Russia’s access to their financing.
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Russian opposition figure Alexei Navalny disappears from prison, aides say
Russian opposition figure Alexei Navalny disappears from prison, aides say
UnionPay, a Chinese payment system once a lifeline for Russians after the exit of Visa and MasterCard in March 2022, has cut its exposure to sanctioned banks in Russia.
However, some smaller Chinese banks with no other international business ties, have been willing to finance Russia and assist in service payments.
But the role of Chinese financial institutions – especially smaller banks with no ties to places such as the US or European Union – as the main channels for Russia’s overseas activities is being tested following the introduction of further US sanctions last month.
The restrictions mean banks run the risk of secondary sanctions and being cut off from investors in the West if they do business with sanctioned Russian entities.
At least two state-owned Chinese banks have ordered a review of their Russian businesses, Bloomberg reported last month without naming the institutions.
Russian drones kill 7, including children and baby, in petrol station fire
Russian drones kill 7, including children and baby, in petrol station fire
Beijing has not condemned Russia’s actions in Ukraine and repeatedly said it will not join what it calls illegal and unilateral Western sanctions on Russia, but it has also said it will not deliberately circumvent sanctions.
China and Russia have grown increasingly close both politically and economically in recent years.
