**Chinese Banks Cut Ties with Sanctioned Russian Banks**
Chinese banks are ending their relationships with Russian financial institutions recently placed under new US sanctions. This move follows the US Treasury Department’s decision to add over 50 Russian banks, including Gazprombank, to its sanctions list.
**Major Chinese Institutions Block Payments**
The majority of Chinese banks have stopped working with sanctioned Russian banks, according to industry executives. The Bank of China and other major institutions are no longer making payments from these organizations. Even the popular payment method, Bank of Kunlun, has notified clients that it will no longer accept payments for them.
**Alternative Payment Methods Emerge**
As a result of the sanctions, new payment methods have appeared in Russia. Chinese payment agents in Russia are now offering complex and sometimes questionable payment schemes to avoid US sanctions. These arrangements often involve making payments through undocumented channels or using grey schemes to smuggle goods into Russia.
**Impact on Trade between China and Russia**
The decision by Chinese banks to cut ties with sanctioned Russian banks could have a significant impact on trade between the two countries. China has become Russia’s leading trade partner, and the decline of this relationship is likely to affect Russia’s economy. The ruble has already declined in response to the sanctions.