Chinese Heihe Rural Bank's Operations Halted with Russia, According to Vedomosti Report
In recent weeks, there have been significant developments in the financial relationship between Russia and China, with the focus on Heihe Rural Commercial Bank. On July 19, this bank was included in European sanctions, a move that was met with strong opposition from the Kremlin, who have repeatedly called these sanctions illegal and contrary to international law.
Dmitry Peskov, President Putin's press secretary, stated in late June that putting pressure on and trying to influence Russia by force is futile. This statement came before the sanctions were enforced.
Following the imposition of sanctions, Heihe Rural Commercial Bank continued to process payments with Russian banks for a month. However, payment issues started at the end of August, according to a source. Alexei Ostanin, CEO of Money Roo payment agent, noted that calculations with Russia were stopped due to other Chinese banks refusing to accept payments from Heihe.
Dmitry Dvortsy, head of the international project support practice at A-Pro law firm, stated that Heihe Rural Commercial Bank was one of the last to work with non-sanctioned Russian banks. Heilongjiang Suifenhe Rural Commercial Bank, another Chinese bank, was also affected by these sanctions.
In August 2021, Commerzbank suspended payments to Russian banks, and there is no specific public information on when payments are planned to resume. A Chinese bank explained the suspension of operations as "system updates" but did not give specific timelines.
Since August 9, persons from the EU have been prohibited from any operations with Heihe Rural Commercial Bank. Payments to Heihe Rural Commercial Bank stopped on August 28 due to "internal infrastructure adjustments", according to another source. A manager of another credit organization confirmed that Heihe Rural Commercial Bank had suspended calculations with Russian banks, with unknown restart dates.
These developments highlight the complexities and challenges of international sanctions, and the ripple effects they can have on financial institutions and economies.
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