Chinese banks are shutting down transactions with Russia "en masse," with delays in payments intensifying during August, Reuters reported on Aug. 30, citing sources familiar with the matter.
The U.S. unveiled a
new set of sanctions against Chinese and Russian companies over their support for Moscow's aggression last week. Despite efforts to avoid or mitigate the impact of the trade restrictions, Chinese institutions have begun scaling back their business dealings with Russia.
Specifically, a number of major Chinese banks have begun
blocking transactions for electronics out of fear of secondary sanctions.
Transactions worth tens of billions of yuan are currently stuck in limbo, a source
told Reuters.
It's just the latest case of
mounting obstacles in
Russian-Chinese economic relations amid the growing pressure of
U.S. sanctions imposed over Moscow's full-scale invasion of
Ukraine.
Trade between Russia and China
has surged by 121% since 2021, underscoring China's role as Moscow's economic lifeline.