Chinese banks Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB) and Bank of China have stopped accepting payments from financial organizations sanctioned by Russia.
These banks rank first, second and fourth in terms of assets in China. As reported by Izvestia, operations with Russian banks that are not subject to sanctions continue.
ICBC and CCB reject all payments received from sanctioned banks, regardless of the interbank transfer system used: SWIFT, Russian SPFS or Chinese CIPS, the publication’s interlocutors say.
Local banks explain the situation by internal company policies. The source emphasized that the restrictions will be implemented until early 2024.
Several large Russian banks have opened their representative offices in China, making it much easier to send payments; For example, VTB reported that there are no changes to settlement conditions through its Shanghai branch.
- In February 2024, large UAE banks also began limiting work with Russian clients due to the risk of secondary sanctions. They began to close accounts of companies and individuals and refuse to make payments to the Russian Federation.
- Previously, Turkish and Chinese banks began to limit work with Russian clients. The reason was secondary US sanctions, which impose restrictions on cooperation with sanctioned individuals.
- US President Joe Biden signed a decree 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 the Russian Federation.
Author:
Karina Pardaeva
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
