This happened after the US announced penalties for financial companies that allowed organizations or individuals to evade sanctions against Russia.
Two Chinese state-owned banks are cutting ties with Russian clients to comply with Western sanctions imposed on Russia over its invasion of Ukraine.
This is reported by Bloomberg with reference to sources.
The publication's interlocutors said that Chinese banks ordered to reconsider their business ties with Russia after the United States announced in December 2023 that it would punish financial companies that allowed organizations or individuals to evade sanctions.
According to the publication, banks are reviewing customer business registrations, authorized beneficiaries and ultimate controllers to determine whether they have ties to Russia's defense industry and could be linked to its invasion of Ukraine.
Chinese leader Xi Jinping announced a “borderless” partnership with Russia following its invasion of Ukraine, boosting exports of consumer goods and technology components to blunt the impact of Western sanctions.
However, China remains highly dependent on Western markets to lift the country out of its economic slump, and has softened its stance toward the US in recent weeks.
“China's announced response to secondary US sanctions further indicates that China has reservations about the Kremlin's desired “borderless partnership” between the two states “, noted analysts from the analytical American Institute for the Study of War.
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The United States and its allies imposed a series of sanctions on Russia over its unprovoked invasion of Ukraine, but Russia was able to mitigate them by increasing its trade ties with China and diversifying its oil and gas exports.
Chinese banks have provided billions of dollars in loans to Russia since the invasion of Ukraine nearly two years ago, according to Bloomberg.
The US subsequently introduced other sets of sanctions aimed at closing loopholes and punishing companies doing business with sanctioned Russians.
Recall that in 2023, trade turnover between China and Russia reached a new record. Even taking into account the Russian war against Ukraine, economic ties between Beijing and Moscow are strengthening.
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