Chinese banks tighten screws on Russian imports amid sanctions
Russian companies are encountering significant difficulties paying for goods imported from China, even those not under sanctions. Banks are declining payments, especially when the shipment is bound for a terminal on the Western countries' "blacklist." Additionally, Kazakhstan is not willing to assist Russians in this matter.
The situation is highlighted by themoscowtimes.com, which reports that Chinese banks have requested details on shipment routes from Russian importers for some time. The reason for this has recently become apparent.
One importer told the service that the Bank of China denied payment for a shipment of plastic household goods. The shipment was planned to travel through Zabaykalsk to the Moscow region and be handled by TransContainer (a Russian railway operator).
Chinese banks wary of aiding Russia in evading sanctions
TransContainer, once a part of the national railways and now owned by the Delo group, is the premier operator for rail shipments. It manages over 140,000 containers and 40,000 rail platforms. Despite efforts to boost rail imports from China by constructing a modern terminal in Zabaykalsk, Western sanctions have thwarted these plans.
The United States imposed strict sanctions on TransContainer in late February, citing its connections to the Russian military sector and involvement in North Korean ammunition supplies.
In late February, Washington warned Chinese banks of secondary sanctions if they aided Russia in skirting these restrictions. Since then, transactions between China and Russia have faced significant challenges.
Logistics company representatives have shared with themoscowtimes.com that only about one in five direct transfers are completed without issues. Most of the payments get stalled in Chinese banks, which demand extensive details from both senders and recipients regarding the purpose of the payments.
As a result, some importers resort to using third-country intermediaries for payments, which, they admit, increases operational costs by 5 to 20 percent.
Kazakhstan not aiding Russians with imports
The decreasing capacity to make payments to China has led to a slump in Russian imports. The Russian central bank's representatives have noted in a late-April discussion on interest rates that the relatively weak import dynamics are out of sync with strong domestic demand.
Russian importers also point out the impracticality of sea shipping due to the substantial additional costs involved in changing routes. Goods are ready for shipment at rail terminals as soon as the exporter's account receives payment. Shipping through Kazakhstan also presents difficulties.
One importer told themoscowtimes.com, "Kazakhstan has unambiguously stated that it will follow the sanctions regime."
