The sanctioned Russian company wants to pay, and the Chinese state owned bank refuses to accept it?

Mondo Finance Updated on 2024-03-05

China's state-owned banks have refused to accept payments from some Russian-sanctioned companies, drawing widespread concern. Some people wonder why Western sanctions against Russia are implicated in China? The truth is far more complicated than we think.

Since the escalation of the situation between Russia and Ukraine, Western sanctions have been closely followed, which has seriously impacted Russia's financial map. According to the latest reports, three major state-owned banks – ICBC, CCB and BOC – have suspended transactions with some Russian-sanctioned banks.

Does this move herald a subtle turning point in the road of China-Russia financial cooperation? Let's dive into the complex relationships behind it.

* The essence of the matter, you may wish to listen to the official voice. Chinese Ambassador to Russia Zhang Hanhui revealed that third-party intervention is one of the reasons. That"Third Parties"The intention must be well known to everyone.

In the face of the pressure of secondary sanctions from the West, the Bank of China had to respond cautiously. In fact, Chinese companies have already been affected: on February 22, the United Kingdom implicated new measures related to Russia in the name of sanctioning three Chinese companies; On the 23rd, in the 13th round of EU sanctions, 4 more Chinese companies were punished; On the same day, the United States blacklisted nine Chinese companies for allegedly assisting Russia in circumventing sanctions.

Some people wonder why China is asking for China's cooperation since these sanctions are not authorized by the United Nations and are only unilateral actions of individual countries. China has a clear position, adheres to neutrality in conflicts, advocates peaceful dialogue, and does not affect the normal exchanges between China, Russia and Ukraine

But in the black-and-white dichotomy logic of the West, there is a clear line between friends and enemies, either join them in sanctioning Russia or accept the fate of being sanctioned. More worryingly, the U.S. uses the SWIFT system to monitor international financial transactions, and intelligence agencies have the ability to track your cross-border financial transactions by collecting global communications data and even technology theft.

As soon as they touch their sensitive nerves, actions against you may follow.

In the midst of global economic changes, countries such as China and Russia are actively seeking risk prevention and control strategies, and innovative measures such as self-built currency clearing platforms and bilateral local currency transactions have been carried out frequently. According to statistics, the settlement share of RMB in China and Russia has exceeded 90%, reflecting strong cooperation.

It is worth mentioning that the currency swap settlement between the two countries almost excludes the US dollar, which marks the increasingly close economic ties between the two countries and the marginalization of the role of the US dollar.

Although it will take some time to get rid of the full protection of the Western clearing system, the Bank of China has made it clear that Russian companies can pay in rubles and yuan, which is undoubtedly a positive signal for Sino-Russian cooperation to find a solution.

In fact, the refusal to accept payments from Russian companies is more of a temporary countermeasure, and behind it is China's deliberate strategy. We resolutely resist the United States"Long-arm jurisdiction"At the same time, they are also carefully managing risks and insisting on courage and resourcefulness.

China advocates peace, but it is never afraid of challenges.

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