Chinese exporters have stopped supplying goods to Russia without prepayment, Izvestia reported, citing Vadim Filatov, President of the Association of Automotive Cargo Carriers and Forwarders, and other market participants. The reason for this is the new US sanctions of 23 August, which affect Chinese companies and banks cooperating with Russia, causing concern among financial institutions and suppliers in China.
Ekaterina Kizevich, CEO of Atvira, noted that there have been cases where banks have returned payments made for shipped goods due to the lack of confirmation of their non-sanctioned status. Kizevich added that due to fears of secondary sanctions, Chinese banks were returning payments regardless of whether the goods were shipped to Russia or not.
According to Nikolai Dunaev, Vice President of Opora Russia, even payments for non-sanctioned goods sometimes fail, causing Chinese suppliers to refuse shipments. Companies that previously bought goods with confidence are now facing difficulties due to payment returns. New market participants are not buying goods without prepayment, and the processing of payments is becoming increasingly complex, the expert told the publication.
Trade between Russia and China has been complicated following the entry into force of the 12th EU sanctions package and US President Joe Biden’s decree authorising the US Treasury to impose restrictions on third-country banks assisting the Russian military-industrial complex and sanctioned companies.
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