When asked to comment on reports that there were problems with payments between the two countries, including transactions through financial messaging systems, he told reporters: “No, there are no such problems. Some banks in China has so far refrained from trading as a precautionary measure due to concerns. [of being] Approved. However, we are confident that this issue will be resolved. ”
“We are in close dialogue with our Chinese friends and, of course, will resolve any issues that arise,” Kremlin spokesman Dmitry Peskov told reporters in a briefing call on Wednesday.
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‘We have weathered many storms’: Xi and Putin vow to deepen ties during Lunar New Year phone conversation
Russia’s Vedomosti Economic Daily reported last week that Zhejiang Zhouzhou Commercial Bank informed customers that it had suspended all transactions with Russia and Belarus.
Zhouzhou Commercial Bank is based in the eastern Chinese city of Yiwu, the world’s largest retail goods wholesale market, and is one of the main banks for Russian exporters, according to Vedomosti.
According to Central Bank of Russia Governor Elvira Nabiullina, a third of all Russian exports are now settled in renminbi.
Some of China’s largest financial institutions have already announced plans to limit ties with Russia since the invasion of Ukraine.
The Bank of China, the Industrial and Commercial Bank of China, and two Chinese-led development institutions (New Development Bank and Asian Infrastructure Investment Bank) have all reportedly restricted access to Russian financing.
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After the withdrawal of Visa and Mastercard in March 2022, UnionPay, the Chinese payments system that was once a lifeline for Russians, has reduced its exposure to Russia’s sanctioned banks.
But some small Chinese banks with no other international business ties are willing to lend to Russia and help pay for services.
But the role of Chinese financial institutions, especially smaller banks with no ties to the United States or the European Union, as a key conduit for Russia’s overseas activities is being tested after the United States introduced additional sanctions last month.
The restrictions mean that banks risk secondary sanctions and cut off from Western investors if they do business with sanctioned Russian companies.
At least two Chinese state-owned banks have been ordered to review their Russian operations, Bloomberg reported last month, without naming the banks.
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Russian drone kills 7 people, including children and babies, in gas station fire
Beijing has not condemned Russia’s actions in Ukraine and has repeatedly said it will not join the West’s illegal and unilateral sanctions against Russia, but it has also said it has no intention of intentionally circumventing sanctions. There is.
China and Russia have grown closer politically and economically in recent years.