Problems with making payments to China, which arose for Russian exporters several months ago due to sanctions, worsened in August, Reuters writes, citing sources. The volume of frozen transactions, according to the agency's sources, is estimated at tens of billions of yuan.
Difficulties with making payments began after the US Treasury expanded the list of anti-Russian sanctions in June, one of Reuters' sources said. The restrictions affected, in particular, dozens of Chinese suppliers. That same month, the US tightened the mechanism of secondary sanctions, including against foreign banks for helping with transactions with Russia.
"At that time, all cross-border transfers to China were stopped. We found a solution, but it took about three weeks. During this long period, trade volumes dropped sharply," the agency quotes the source as saying.
According to the source, one of the ways to solve the problem with payments was to buy gold, which was then sold in Hong Kong, and the proceeds were deposited into accounts in a local bank. Suppliers also began using intermediaries when concluding transactions, but this has significantly increased the costs of processing transactions, Reuters notes.
Commenting on the situation, Russian presidential press secretary Dmitry Peskov told the agency that "with such volumes and in such an unfriendly environment, it is impossible to avoid some problematic situations." At the same time, Mr. Peskov noted that China and Russia can constructively discuss and resolve all emerging issues thanks to the "truly partnership spirit of our relations."
According to Chinese customs data cited by Reuters, in the first half of 2024, trade turnover between China and Russia increased by 1.6%, to $137 billion. However, due to payment problems, imports from China in January-July 2024 decreased by more than 1%, to $62 billion.
Difficulties with making payments began after the US Treasury expanded the list of anti-Russian sanctions in June, one of Reuters' sources said. The restrictions affected, in particular, dozens of Chinese suppliers. That same month, the US tightened the mechanism of secondary sanctions, including against foreign banks for helping with transactions with Russia.
"At that time, all cross-border transfers to China were stopped. We found a solution, but it took about three weeks. During this long period, trade volumes dropped sharply," the agency quotes the source as saying.
According to the source, one of the ways to solve the problem with payments was to buy gold, which was then sold in Hong Kong, and the proceeds were deposited into accounts in a local bank. Suppliers also began using intermediaries when concluding transactions, but this has significantly increased the costs of processing transactions, Reuters notes.
Commenting on the situation, Russian presidential press secretary Dmitry Peskov told the agency that "with such volumes and in such an unfriendly environment, it is impossible to avoid some problematic situations." At the same time, Mr. Peskov noted that China and Russia can constructively discuss and resolve all emerging issues thanks to the "truly partnership spirit of our relations."
According to Chinese customs data cited by Reuters, in the first half of 2024, trade turnover between China and Russia increased by 1.6%, to $137 billion. However, due to payment problems, imports from China in January-July 2024 decreased by more than 1%, to $62 billion.
