About 10 China's banks began to block payments from the Russian Federation in Yuan - the media

The refusal to accept payments in Yuan will complicate payments for Russian companies that are forced to open accounts in "friendly" countries that do not fall under the sanctions of the event. Big Chinese banks have ceased to accept payments in Yuan from Russia and began to return such transactions to clients. About it reports the Russian edition of The Moscow Times. According to the publication, at least eight credit institutions have stopped accepting Russian payments.

Also, Juan's transactions do not go through international banks with international participation - Citibank, Standard Charter Bank, HSBC, JP Morgan, BNP Paribas, Deutsche Bank and Mizuho Bank. However, most of them ceased operations with clients with the Russian Federation two years ago, Chinese credit institutions - from mid -January 2024.

According to experts, the calculations of Russian companies can be continued in several ways: at the same time analysts say that about 80% of Russian companies operating regularly with the PRC have already opened branches in "friendly" countries that are not subject to sanctions. Prior to this, it was reported that most of China banks stopped receiving dollar transfers from Russia, and began to delay payments due to additional inspections, but the transactions in national currencies continued.

Now it is about stringent restrictions. The reason for the measures taken from the beginning of this year was the fears of Chinese bankers to impose secondary sanctions and other pressure from the United States, as one of the insiders of the publication explained. In addition, in early February it became known about the termination of financial transactions with the Russian Federation and Belarus of the key Chinese bank Chouzhou Commercial Bank.

Moreover, any transactions were discontinued not only because of SWIFT, but also through the Russian payment system SPFS and Chinese-CIPS. At the end of December 2023, US President Joe Biden signed a decree that allowed sanctions on foreign financial institutions if they conduct operations in the interests of Russia's military-industrial complex, thus supporting the aggression of the Russian Federation against Ukraine.

"Finnitities may be replaced, which made significant transactions in the interests or on behalf of any person entered in Washington's sanctions for activities in the interests of the Russian OPC, or facilitated such agreements," the document said.

As a result, state banks of China have increased restrictions on the financing of Russian clients after the United States has promised to impose secondary sanctions on foreign financial companies that assist the Russian Federation in the war against Ukraine, according to Bloomberg. Focus wrote that China has increased its military and nuclear opportunities, reaching record indicators since the Second World War. This happens in the context of preparation for a possible invasion of Taiwan by 2027.