Bank of China limits transactions with sanctioned Russian banks
Transactions in yuan between Russia and China have been complicated. The Bank of China does not intend to sever all ties with its Russian partners and will continue cooperating with credit institutions that are not subject to sanctions.
6:21 AM EDT, June 24, 2024
According to information obtained by the Russian newspaper Kommersant, the Bank of China has decided to suspend cooperation with Russian banks on the US sanctions list, known as the SDN (Specially Designated Nationals) list developed by the Office of Foreign Assets Control of the Treasury Department.
Nevertheless, the bank does not plan to cut all connections with Russian partners. It will maintain relationships with credit institutions that are not affected by sanctions.
The Bank of China is responsible for a significant portion of the payment traffic between Russia and China. However, there is a noticeable trend towards shifting flows through non-bank intermediaries, notes Kommersant.
According to the newspaper, the Bank of China has decided to stop processing yuan payments from Russian banks on the US SDN list. This change will take effect on June 24.
