According to The Moscow Times, following the refusal of local Chinese banks to accept payments from Russia, over 98% of Chinese banks now reject direct transactions from Russia.
In May and June, local credit institutions were still dealing with Russian businesses, and payments were relatively stable. However, since July 20, transactions have essentially ceased.
This widespread rejection could lead to supply chain issues and increased prices for goods in Russia.
Regional banks in China, which were initially a fallback for Russian companies, have stopped processing payments directly. Russian businesses are now attempting to conduct transactions through third countries.
In the past three weeks, the number of applications to existing payment agents handling transactions via third countries has surged significantly. Russian companies often route payments to China through Hong Kong banks, though some Chinese financial institutions are also refusing to work with them.
There is also the option of transferring funds through branches of Russian banks in China, but these branches sell yuan to clients at a 5% premium over the central bank's rate. Additionally, many Chinese companies are not accepting money from Russian financial organizations' branches.
