China firms go 'underground' on Russia payments as banks pull back

29/4/2024 12:15

        An appliance maker in southern China is finding it hard to ship its products to Russia, not because of any problems with the gadgets but because China's big
        banks are throttling payments for such transactions out of concern over U.S. sanctions.
        
        To settle payments for its electrical goods, the Guangdong-based company is considering using currency brokers active along China's border with Russia, said the company's founder, Wang, who asked to be identified only by his family name.
        
        The U.S. has imposed an array of sanctions on Russia and Russian entities since the country invaded Ukraine in 2022.
        
        Now the threat of extending these to banks in China - a country Washington blames for "powering" Moscow's war effort - is chilling the finance that lubricates even non-military trade from China to Russia.