Russian businesses face increased payment rejections from Central Asian banks amid sanction fears
Payment rejections for Russian businesses using Central Asian banks jumped by 30 percent in July, according to a survey conducted by transport companies PEK, Digital VED, GTL, and Logita Trade, reported the Russian news agency RBC.
The payment processing time increased by about 15 percent to two weeks. This issue affected banks in Kazakhstan, Kyrgyzstan, Uzbekistan, and Tajikistan. They have started requesting more additional documents and clarifications from Russian companies: information about founders, clients, transactions, and sources of funds, according to PEK's financial director Roman Romashevsky. "Often payments are simply delayed or returned without explanation. The handling Russian bank does not know the reasons and cannot clarify, as the issue arises on the receiving bank's side abroad," explained the financier. He noted that the problems intensified in the second quarter of 2024.
The most significant issues arise with transfers through Central Asia to China, noted Digital VED founder Anna Fomicheva.
Problems with payments through the banks of "friendly countries" emerged in 2023 but have worsened in 2024 due to the growing threat of secondary sanctions. Banks cite concerns about falling under U.S. sanctions, imposed in response to Russia's aggression against Ukraine, as a reason for refusals, explained Nikolai Dunaev, chairman of the "Opora Russia" committee on international relations.