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The “subsidiary” of Bank of China has slowed down its economic relations with Russia through US sanctions

Natasha Kumar By Natasha Kumar Jun25,2024

Bank of China subsidiary halts payments with Russia due to US sanctions

Photo: Bank of China

“Bank of China”, Russian “daughter” Chinese Bank of China, which handles yuan payments between Russia and China, has suspended operations with Russian banks on the US SDN List. With the consent of its partners, the bank will continue its work. Several sources on the financial market have reported this, Kommersant reports.

At the Bank of China A significant portion of payment traffic between Russia and China fell, although now the bank is increasingly moving towards non-bank intermediaries. The parties believe that the decision is linked to the prevention of secondary sanctions.

Bank of China has been operating in Russia since 1993. According to data as of February 1, 2022, the total assets of the subsidiary in the Russian Federation amounted to 65 billion rubles. Bank of China is considered the main payment institution for Chinese companies and governments.

On the eve of April, The Wall Street Journal reported via sources that the United States is working on sanctions against several Chinese banks. Chinese companies and individuals have been regularly subject to US sanctions against Russia for the past few years, according to a new package of sanctions announced on June 12.

BAGNET warns that the US has imposed sanctions against several Russian financial institutions that act as intermediaries in dollar trading on the Russian currency market, including the Moscow Exchange, the National Clearing Center and the National Settlement Depository.

Prepared by: Serhiy Daga

Natasha Kumar

By Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my natasha@thetimeshub.in 1-800-268-7116

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