Contents tagged with China
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New payment verification requirements hamper Russian imports of Chinese goods
Russian buyers importing Chinese goods are encountering new challenges, as Russian banks now require written guarantees of payment acceptance for transactions with China. According to a report from Russian newspaper Vedomosti, Russian banks that still manage to send money to China are demanding written assurances from importers that the payments will be accepted. This has created complications for buyers of Chinese products in Russia.
Vedomosti's sources indicate that Chinese suppliers must …
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Chinese exporters demand prepayment from Russian clients amid sanction-driven economic shifts
In a significant development, Chinese exporters have suspended shipments to Russia without prepayment, a stark shift from prior practices. This move reportedly comes in response to sanctions against Russia, reports Izvestia, citing Vadim Filatov, President of the Association of Automobile Cargo Carriers and Forwarders.
According to Filatov, Russian companies that previously enjoyed trusted credit terms now face unprecedented challenges due to payment reversals. Additionally, new Russian …
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UAE banks begin blocking payments made by Russian companies for electronics bought in China
In August, banks in the United Arab Emirates (UAE) began blocking payments for electronic components and consumer electronics purchased by Russian companies, according to a report published on Wednesday, August 28 by the Russian business daily Kommersant.
The payments are reportedly blocked even in cases where the goods do not enter the UAE.
"Russian organizations have been using UAE-based companies as intermediaries to transfer funds for electronics to China, with the goods directly shipped …
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China and Saudi Arabia halt crucial MDI chemical shipments to Russia amid sanctions
In a significant development, China and Saudi Arabia have stopped the supply of irreplaceable chemical products to Russia. Currently, Russia is entirely dependent on imported MDI, especially following the European Union's 14th sanctions package.
According to the Polish newspaper Rzeczpospolita, Chinese giant Wanhua Chemical Group and Saudi firm Sadara Chemical have ceased shipments of isocyanates (MDI) to Russia. This chemical is crucial in sectors like automotive, construction, and household …
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Chinese banks halt payments from Russian importers amid sanctions concerns
Several Chinese banks have started refunding payments for goods already delivered to Russian importers by their Chinese business partners, reports Vedomosti, citing four businessmen who have encountered this issue recently.
Russian business representatives have yet to determine the reasons behind the payment rejections in Chinese banks. One source suggested that the issue might be related to compliance checks. However, these incidents are becoming increasingly common.
The payment problem …
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China shifts oil imports from Russia to Middle East
In a significant shift, China has increased its purchases of oil from the Middle East, seemingly at the expense of Russian imports. This development follows Russian President Vladimir Putin's recent visit to Beijing. According to Chinese customs data cited by The Moscow Times, the trend of declining Russian oil imports into China accelerated after the trip in May.
Russian oil companies are grappling with a stark drop in demand from China. In July, Russian oil exports to China fell by 7.4% year- …
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Chinese suppliers seek to reroute goods to Russia via third countries amid sanctions
Chinese suppliers have started requesting routing goods destined to Russia via third countries, reports the Russian news outlet Izvestia.
Russian businessmen have noted that these constraints have been apparent since mid-July. These restrictions predominantly impact products that have landed on Western sanctions lists, with electronics being a primary concern.
Chinese suppliers typically request shipping goods through third countries when they cannot accept payments through Chinese banks or …
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Mongolia rejects 'Power of Siberia-2' gas pipeline, deals major blow to Russia's energy ambitions
In a significant setback for Moscow, Mongolia has definitively rejected the proposal to build the "Power of Siberia-2" gas pipeline. The Chinese newspaper South China Morning Post has reported that Mongolia has officially excluded the pipeline from its long-term plans extending up to 2028.
Experts interpret Mongolia’s decision as the final rejection of the contentious project, which was seen as a financial lifeline for a Russia grappling with sanctions. Losing access to the European gas market …
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Ukraine’s Foreign Minister embarks on landmark visit to China
Ukraine’s Foreign Minister Dmytro Kuleba is set to visit China this week following an invitation from his Chinese counterpart, Wang Yi, according to China’s state news agency Xinhua.
This marks Kuleba’s first trip to Beijing since the onset of Russia’s invasion of Ukraine. For nearly two years, Kuleba has refrained from visiting the Chinese capital.
China's Foreign Ministry has shared limited details about the visit, with spokesperson Mao Ning stating that Kuleba will be in China for several …
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Russia faces major trade disruption as Chinese banks reject Yuan payments
Russian importers are grappling with a new significant issue in their transactions with China. Payments in yuan bought in Russia are increasingly being rejected, causing alarm among market participants, reports The Moscow Times. Both Chinese banks and payment agents handling transfers to the East via third countries are wary of dealing with such funds, sources say.
Market insiders revealed that new terminologies— "clean" and "dirty" yuan—have emerged in the cross-border payments sector since …