The Chinese bank Chouzhou Commercial Bank informed its clients about the suspension of transactions with Russia, writes Vedomosti citing three businessmen, business associations and financial consultants.
According to the publication’s interlocutors, managers recently informed clients that the bank would end relations with any Belarusian or Russian person. The owner of one of the companies said that due to the financial institution’s decision, his company had already failed in several deals.
Vedomosti points out that due to the interruption of payments and the arrival of the Chinese New Year, a logistical collapse is almost inevitable: it will be difficult to export goods until March due to the long weekend. The newspaper claims that Chouzhou is the main bank for Russian importers due to its relatively lenient compliance and the convenient geographical location of its headquarters.
In January, Chinese state banks began limiting financing to clients in the Russian Federation. The reason was secondary US sanctions, which impose restrictions on cooperation with sanctioned individuals. US President Joe Biden signed an executive order on secondary sanctions at the end of 2023. The document gives the US Treasury the authority to impose restrictions on foreign banks in case of cooperation with Russia.
Author:
Karina Pardaeva
Source: RB
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