Chinese exporters have stopped supplying products to Russia without prepayment, reports Izvestia, citing Vadim Filatov, president of the Association of Automotive Cargo Carriers and Forwarders, and other market participants. This is due to new American sanctions from August 23, which affect Chinese companies and banks cooperating with Russia, causing concern among financial institutions and suppliers in China.
Ekaterina Kizevich, CEO of Atvira, noted that there have been cases where banks returned payments for shipped goods due to a lack of confirmation of their "sanction-free" status. She added that due to fears of secondary sanctions, Chinese banks return payments regardless of whether the goods have been shipped to Russia.
According to Nikolai Dunaev, vice president of Opora Russia, even payments for non-sanctioned goods sometimes fail, causing Chinese suppliers to refuse shipments. Companies that previously received goods on trust now face difficulties due to payment returns. New market participants are not receiving goods without prepayment, and processing payments is becoming increasingly complex, the expert told the publication.
Even civilian goods supplies can be blocked "just in case," added Alexey Cherkasov, director of LLC TSK "Stroy-Arsenal." Special attention is given to transactions involving industrial equipment, electronics, and dual-use goods, which are carefully checked by Chinese banks, noted Vitaly Mankevich, chairman of the Russian-Asian Union of Industrialists and Entrepreneurs.
Trade between Russia and China has been complicated following the introduction of the 12th EU sanctions package and a decree by US President Joe Biden allowing the US Treasury to impose restrictions on third-country banks assisting the Russian military-industrial complex and sanctioned companies.
On August 23, the US Treasury expanded restrictions, adding 400 legal entities and individuals to the sanctions list, as well as seven gas tankers. The department explained that their products and services help Russia sustain its military efforts and circumvent previously imposed sanctions.
On August 28, it was reported that banks in the United Arab Emirates began blocking payments from Russian companies for electronic components and consumer electronics from China, dealing a blow to one of the last channels for importing Chinese gadgets and equipment into Russia.
Shortly before, 20 major companies, including representatives from the automotive industry, construction firms, and household appliance manufacturers, sent a letter to the government stating that Russian industrial enterprises face bankruptcy and production stoppage due to the inability to procure critical raw materials from China and other "friendly countries."
