China's largest banks stop servicing sanctioned Russian companies
China's largest banks stop servicing sanctioned Russian companies (Getty Images)
China's major banks, specifically the Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), and Bank of China, have ceased to accept payments from Russian financial institutions, according to Kommersant.
ICBC, CCB, and Bank of China rank first, second, and fourth in terms of assets in China. The banks informed Russian clients of the cessation of payment acceptance since the beginning of January 2024. It is noted that transactions with non-sanctioned credit organizations continue.
Sources within a Russian bank revealed that ICBC and CCB are rejecting all payments originating from Russian sanctioned financial institutions, regardless of the system through which they are processed—be it SWIFT, Russia's SPFS, or China's CIPS. It is emphasized that the Chinese banks justify their decision with the internal policies of credit institutions.
China has not imposed sanctions against Russia or Russian companies following the full-scale invasion of Ukraine. However, many Chinese companies are compelled to comply with the Western sanctions policy to avoid secondary sanctions and to foster cooperation with the US and EU.
New package of sanctions against Russia
In January, the EU began discussions on the 13th package of sanctions against Russia. Restrictions are proposed to be approved by the second anniversary of the full-scale invasion of Ukraine.
According to Western media reports, the package will not impose new restrictions on the import of Russian products.
However, it was recently revealed that EU ambassadors have yet to agree on the 13th package of sanctions. According to the Financial Times, it is being blocked by Hungary.
