Payments from Russia to China are forced to go through intermediaries

Russian entrepreneurs open accounts in several Chinese banks at once so that at least one of them can make a payment. Currently, about 50% of payments from Russia are sent to China through intermediaries in friendly countries.

These include Hong Kong, Kyrgyzstan, Kazakhstan, the United Arab Emirates and other states that have not imposed sanctions against the Russian Federation. The cost of intermediary services can be several thousand dollars, writes Reuters.

Chinese banks have significantly restricted transactions with Russian companies in order not to fall under secondary US sanctions. This leads to delays in payment and shipment of goods, as well as increases the risks of cargo confiscation in other countries.

For example, a batch of servers that went to Russia from China through Kazakhstan was confiscated because sanctions restrictions began to apply to the goods.

In addition, the informal nature of transactions with intermediaries may alert Chinese banks, and it will be more difficult for entrepreneurs to return their funds.

Source https://www.reuters.com/business/finance/half-russias-payments-china-made-through-middlemen-sources-say-2024-04-26/