China's state banks are tightening restrictions on financing Russian clients. The reason is the threat of secondary sanctions from the United States against organizations that help Russia.
Not long ago, two Chinese banks ordered checks on their Russian clients. They were checking cross-border transactions, Kommersant reports with reference to Bloomberg. The Chinese banks will sever ties with clients from the sanctions list and stop providing financial services to the Russian military sector.
During the inspections, the Chinese are looking for information on whether their companies and their beneficiaries are registered in Russia. Non-Russian companies will also be subject to inspections if they do business in Russia or supply certain groups of goods through third countries.
In December 2023, the U.S. Ministry of Finance promised to impose secondary sanctions on credit organizations that help Russia buy equipment for the defense industry.
Earlier, a representative of the Chinese Foreign Ministry said that Beijing highly appreciates Russia's position on the elections in Taiwan.