China-Faced sanctions against Russia

Banks of China reduce the number of transactions in Russian rubles

Important notice: Law&Trust no longer work in Russia. Transfer of operational control over Law&Trust in Russia to local management and the formation of the LegalCraft brand was started in 2022 and came into effect in October 2024.

Despite the absence of official confirmation by Beijing, Russia notes the secret adherence of Chinese partners from the banking sector to sanctions imposed by the United States and the EU acceding to it in 2014.

Vladimir Danilov, the head of the branch of the Russian bank in China reported it in Harbin on August 14, when commenting on the results of the meeting, dedicated to Russian-Chinese cooperation in the field of finance. He noted the increased number of refusals by Chinese banks in conducting payments made by partners from Russia. At the same time, companies that have not been included in any sanctions list fall under the restrictions.

Yuriy Soloviev, the deputy chairman of the VTB, as early as in 2015 tried to inform on the precedent established. In an interview with Rosbalt, published in FinanceAsia, he reported on the change in the position of the Chinese banking sector in relation to Russian banks, which is most likely a consequence of US and EU pressure.

It should be noted that according to the analysis of the Central Bank of Russia, China is more willing to accept payments in yuan and dollars. While the total share of ruble operations on imports decreased to just 3.8% compared to 2013, the dollar segment is fixed at a level of not less than 73.6%.

This position is not acceptable to Russian partners doing business with China, therefore, in the nearest future, representatives of a number of major Russian banks intend to organize a meeting with their Chinese counterparts in the framework of equal partnership.

One should not forget that in August, 2018 in order to ensure American security, the Congress registered a DASKAA draft  aimed at counteracting the Kremlin's aggression. Its adoption will entail the introduction in the US of a ban on operations for the 7 largest Russian banks, including Sberbank and VTB, which will lead to the cancellation of standard currency settlements through correspondent accounts in US banks.