Bank of China restricts yuan transactions with sanctioned Russian banks

Transactions in yuan between Russia and China have become complicated. The Bank of China does not intend to sever all ties with its Russian partners. It will continue cooperating with credit institutions that are not subject to sanctions.

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, specifically the Specially Designated Nationals (SDN) list.

Nevertheless, the bank does not plan to break all ties with Russian partners. It will continue to work with credit institutions that are not under sanctions.

The Bank of China handles a significant portion of the payment traffic between Russia and China, though Kommersant notes a noticeable trend toward shifting these flows to non-bank intermediaries.

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 24th.