UAE banks have begun blocking Russian payments for electronic goods from China

Operations were blocked in cases where paid equipment from other countries did not reach the Emirates. A representative of a large electronics distributor explained that previously Russian importers used the UAE as a way to transfer money for equipment to China, although the goods themselves were immediately sent to the Russian Federation.

The source of the publication noted that payments were made through the UAE thanks to the lowest possible commission – 1-3%. Now banks are forced to reject transactions amid the risk of secondary sanctions from the United States.

According to him, 10-20% of all laptops are shipped to Russia via the UAE, while for other product categories the share can reach 30%.

The need to make payments through the Emirates arose in the spring, when Chinese banks began blocking payments for electronic components from Russian companies. They then had to reorient themselves towards payment through Asian companies.

Experts say that the blockage is initiated by the Chinese side, as China does not like to conduct transactions through third countries. According to Oleg Osipov, director of the electronics manufacturer Beshtau, Chinese banks began to request from Dubai organizations data on the origin of the funds received, as well as a customs declaration to know exactly what was exported from the country.