China’s major banks are reportedly halting transactions related to Russia, due to concerns over U.S. sanctions. This has led to a surge in the use of alternative channels for payments, including cryptocurrency, by Chinese companies conducting business with Russia.
What Happened: The Agricultural Bank of China Ltd, Bank of China Ltd, and China Construction Bank Corp are among the banks that have significantly reduced their financing of Russia-related transactions. Reuters reported citing sources that this has caused a significant problem for small Chinese exporters.
As a result, some Chinese companies are turning to smaller banks on the border and alternative financing channels, including cryptocurrency, despite its ban in China since 2021. Others have chosen to withdraw from the Russian market entirely.
“You simply cannot do business properly using the official channels,” a Guangdong-based company’s founder, Wang, who asked to be identified only by his family name.
According to the report, the U.S. has imposed a series of sanctions on Russia and Russian entities since the country’s invasion of Ukraine in 2022.
The threat of extending these sanctions to Chinese banks, which the U.S. accuses of supporting Moscow’s war effort, has led to a reduction in financial support for non-military trade from China to Russia.
The leader of a trade association in a southeastern Chinese province, representing Chinese …
Full story available on Benzinga.com
China’s major banks are reportedly halting transactions related to Russia, due to concerns over U.S. sanctions. This has led to a surge in the use of alternative channels for payments, including cryptocurrency, by Chinese companies conducting business with Russia.
What Happened: The Agricultural Bank of China Ltd, Bank of China Ltd, and China Construction Bank Corp are among the banks that have significantly reduced their financing of Russia-related transactions. Reuters reported citing sources that this has caused a significant problem for small Chinese exporters.
As a result, some Chinese companies are turning to smaller banks on the border and alternative financing channels, including cryptocurrency, despite its ban in China since 2021. Others have chosen to withdraw from the Russian market entirely.
“You simply cannot do business properly using the official channels,” a Guangdong-based company’s founder, Wang, who asked to be identified only by his family name.
According to the report, the U.S. has imposed a series of sanctions on Russia and Russian entities since the country’s invasion of Ukraine in 2022.
The threat of extending these sanctions to Chinese banks, which the U.S. accuses of supporting Moscow’s war effort, has led to a reduction in financial support for non-military trade from China to Russia.
The leader of a trade association in a southeastern Chinese province, representing Chinese …
Full story available on Benzinga.com
China’s major banks are reportedly halting transactions related to Russia, due to concerns over U.S. sanctions. This has led to a surge in the use of alternative channels for payments, including cryptocurrency, by Chinese companies conducting business with Russia.
What Happened: The Agricultural Bank of China Ltd, Bank of China Ltd, and China Construction Bank Corp are among the banks that have significantly reduced their financing of Russia-related transactions. Reuters reported citing sources that this has caused a significant problem for small Chinese exporters.
As a result, some Chinese companies are turning to smaller banks on the border and alternative financing channels, including cryptocurrency, despite its ban in China since 2021. Others have chosen to withdraw from the Russian market entirely.
“You simply cannot do business properly using the official channels,” a Guangdong-based company’s founder, Wang, who asked to be identified only by his family name.
According to the report, the U.S. has imposed a series of sanctions on Russia and Russian entities since the country’s invasion of Ukraine in 2022.
The threat of extending these sanctions to Chinese banks, which the U.S. accuses of supporting Moscow’s war effort, has led to a reduction in financial support for non-military trade from China to Russia.
The leader of a trade association in a southeastern Chinese province, representing Chinese …Full story available on Benzinga.com Read MoreAsia, China, Kaustubh Bagalkote, News, Russia, Politics, Global, Markets, News, Asia, Politics, Global, Markets, Benzinga Markets
