China tightens Russia payments scrutiny, hitting electronics components, say Russian media

Experts cited by Kommersant said China was the only supplier for such parts, and that Russian companies assembling electronics could therefore face serious difficulties and production delays. Separately, the Izvestia news outlet reported that several Chinese banks such as Bank of China and Great Wall West China Bank were now asking Russian clients detailed questions about their transactions, including whether they involved the Russian military, regions in Ukraine controlled by Russia, or countries like Cuba, Iran, and Syria.

Russian companies are facing growing hurdles when making payments to China, two Russian news outlets reported on Friday, with one saying transactions involving electronics components were being affected. Since late March, some Chinese banks have reportedly begun blocking payments from Russia, particularly for critical electronic components needed for servers, storage systems, and laptops, the Kommersant news outlet reported, citing market participants.

The move expanded previous restrictions that mainly targeted finished goods, it said. Experts cited by Kommersant said China was the only supplier for such parts, and that Russian companies assembling electronics could therefore face serious difficulties and production delays.

Separately, the Izvestia news outlet reported that several Chinese banks such as Bank of China and Great Wall West China Bank were now asking Russian clients detailed questions about their transactions, including whether they involved the Russian military, regions in Ukraine controlled by Russia, or countries like Cuba, Iran, and Syria. The banks started requesting such information earlier this year, it said, and the heightened scrutiny could lead to significant delays or rejections.

Reuters could not immediately verify the two media reports. The West imposed sweeping sanctions on Russia after it sent troops into Ukraine in February 2022. In late March, Reuters reported that several banks in China, the UAE and Turkey had boosted their sanctions compliance requirements, resulting in delays or even the rejection of money transfers to Moscow.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)