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Exclusive: China firms go 'underground' on Russia payments as banks pull back https://t.co/v8POGuPgEi
"Transactions between China and Russia will increasingly go through underground channels," said the head of a trade body in a southeastern province that represents Chinese businesses with Russian interests. "But these methods carry significant risks." https://t.co/GW683vO9c4
Exclusive: As China's big banks pull back from financing Russia-related transactions, some Chinese companies are turning to small banks on the border and underground financing channels such as money brokers and banned cryptocurrency. More here: https://t.co/9UGxdCP1at
Due to fears of secondary sanctions from the U.S., Chinese banks are retreating from financing Russia-related transactions, prompting Russian firms to increasingly rely on middlemen for payments. Approximately half of these payments are now conducted through third parties, as local banks in China avoid direct transactions to mitigate risks. This shift has led to a burgeoning market for middlemen and underground financing channels, including small border banks, money brokers, and banned cryptocurrencies. The head of a trade body in a southeastern province noted that while these methods are becoming more common, they carry significant risks.
