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Chinese Banks Are Complying With US Russia Sanctions

Chinese banks are complying with the sanctions imposed by the US and the EU against Russia, Finanz.ru reported citing representative of the Central Bank of Russia in China Vladimir Danilov.

Reportedly the Chinese banks are delaying transfers to Russian counterparts and sometimes deny the transfers altogether, according to Danilov.

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"The problem is a broad definition of the limitations on third countries by a number of Chinese banks," he noted, adding that even not directly sanctioned companies can be affected.

Some banks are also facing difficulties servicing and opening correspondent accounts in China, the VP of Association of Banks of Russia (ABR) Anatoly Kozlachkov confirmed. Finanz.ru reminds that already back in 2015 the first deputy head of VTB Yury Solovyev complained of obstacles set by Chinese banks.

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At the same time the US dollar remains the main currency in trade deals with China, despite numerous efforts from Kremlin to bring the trade relations to national currencies.

According to CBR data 88% of export deals to China and 74% of imports of Chinese goods are carried out in US dollars. The share of rubles in bilateral trade is only at 3.8%, while yuan accounts for 8%.

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