A Chinese bank has halted transactions with Russia due to EU sanctions

The Chinese Heihe Rural Commercial Bank, which was placed under European Union sanctions, has stopped accepting payments from Russia.

According to one Russian importer, transactions through Heihe had continued normally for about a month after the EU restrictions were introduced, but last week the bank ceased processing payments. The bank explained the move as “adjustments to its internal infrastructure.”

Heihe is a small provincial bank, one of hundreds in China, but experts note it was among the last Chinese banks still willing to open correspondent accounts for Russian non-sanctioned financial institutions. After larger banks stopped handling payments from Russia, parts of Russia’s small and medium-sized businesses had turned to Heihe’s services.

On July 18, the European Union adopted its 18th package of sanctions against Russia, which targeted several Chinese banks linked to cryptoassets undermining sanctions against Moscow. Heihe was among those sanctioned. Beijing responded by saying the measures “have no legal basis” in international law and were not authorized by the UN Security Council.

The sanctions took effect on August 9, since when EU representatives and companies have been prohibited from engaging in any transactions with the Chinese bank.

Source: Suspilne News