Representatives of companies continue to contact the Business FM editorial office, who are unable to complete transactions in China. The situation worsened when the US threatened sanctions for assisting the Russian defense industry. According to sources of the radio station, banks started refusing payments for goods that are not subject to sanctions.
Business FM receives several letters weekly from companies trying to settle payments with China but are unable to do so. In April, some payments were processed with confidence in future cooperation, but now connections are being severed. Some complain that major Chinese banks not only refuse to process payments but also freeze funds for a month or two, then return them. Some are told directly: “You are from Russia, we will not work with you,” even if product lists were ready for payment approval the day before.
In Shanghai, there is a branch of the Russian VTB. it is considered the fastest and most reliable way to process payments. However, not everyone can open an account there. Business estimates suggest that queues to become a bank client last from several months to a year. According to entrepreneurs, the branch has too few employees who cannot process all incoming requests. The CEO of Holding Finance Broker, Tatyana Kulyabina, managed to open an account there. She stated that Chinese banks categorically do not process transactions now. Problems started in February, after the Chinese New Year.
Tatiana Kulyabina – CEO of Holding Finance Broker
Reuters previously reported that payments from Russia to China are now processed manually, causing delays. Almost half of the payments now go through companies in Kazakhstan, Kyrgyzstan, and the United Arab Emirates. Business FM sources confirm that such methods exist in the market, but not everyone trusts them.
There is an option to pay in cryptocurrency, but it is more suitable for small businesses through intermediaries. Transferring payments in this way is highly risky.
Chinese goods, nonetheless, continue to enter Russia despite problems with local banks, says the owner of Vita International Guangzhou, Vitaly Vasiliev. His company supports Russian businesses in China. He mentioned that clients have been seeking help more frequently in recent days.
Vitaly Vasiliev – Owner of Vita International Guangzhou
Imports of goods from China to Russia decreased by 13% in April compared to April 2023. If it was $9.6 billion a year ago, it was approximately $8.3 billion this April. However, in comparison with the previous March, import volume in April slightly increased by over 8%. These fluctuations cannot be considered significant yet, and it is early to draw conclusions, according to Andrey Karneev, head of the School of Oriental Studies at the Higher School of Economics.
Andrey Karneev – Head of the School of Oriental Studies at the Higher School of Economics
Market participants are awaiting the potential impact of the visit of the Russian president to China on the payment situation.