Posted on 07/29/2024 10:39:54 PM PDT by Alter Kaker
The situation with Russian payments to China continues to deteriorate: Chinese banks have begun to return about 80% of transfers in yuan to Russia, informed sources told Kommersant.
According to them, the Chinese side has been tightening requirements "increasingly" since December 2023. Then US President Joe Biden signed a decree allowing the US Treasury to impose secondary sanctions against credit institutions of third countries for cooperation with Russian sanctioned companies and assistance to the military-industrial complex (MIC).
After another tightening of sanctions in June, when the United States included all sanctioned persons, including Russian banks, in the definition of the military-industrial complex of the Russian Federation, transfers on the Chinese side began to freeze for up to several weeks, after which they are often canceled without explanation, says one of the interlocutors of Kommersant. As a result, according to him, the client suffers losses on the exchange rate and conversion. "Everyone will take the commission, but the payment will not be executed," the source said.
"According to our experience, banks do not ask anything: money simply depends on correspondent accounts for 30-40 days and go back, says the managing partner of the consulting company "Sapoznikov and partners."
According to him, sometimes the goods arrive in Russia and the Chinese supplier can not receive their money for five to six months. However, often deliveries continue on post-payment terms, Sapozhnikov added.
Russian companies increasingly have to resort to the services of intermediaries - payment agents or "shopping houses," says the founder of Sagrada Legal Oleg Ushakov. In the first case, the agents are responsible only for payment services, in the second - we are talking about the fact that such houses are entrusted not only with the transfer of payment, but also the function of movement of goods.
At the moment, payment agents account for about 30% of payments, according to the source of "Kommersant" on the market. The use of an intermediary entails a rise in the cost of the transaction, since customers need to lay an additional commission. On average, it is 3-55%, but can reach up to 8-10%, depending on the complexity of the logistics chain and the amount of the transaction, Ushakov clarifies. At the same time, so that the deal does not fall under the risks of compliance and was unsanctioned, it may be necessary not only to make a neutral payment, but also to actually bring the goods from China first to neutral jurisdiction, and then to Russia, the expert concluded.
There’s some things lost in translation.
The Moscow Times is known as a fake news source.
Are you paid in rubles or in yuan?
Glowie.
I doubt they have the expertise to compete with the US "media" production of fake news.
Yes, they appear to be minor league Gaslight Media, maybe a single A or AA "news" franchise.
Our Media is The Show. Kind of weird.
Hurr-durr! Hurr-durr! Don't look at our economic clown car here in America! Da sanctions will win in da end!
"76% Of All Personal Income Tax Last Month Went To Servicing The $34 Trillion National Debt"
A hurt dog hollers.
We had better address our economic clown car before worrying about the clown cars of others, don’t ya think?
Yes I totally agree. Your country should focus on its economy before it invades its neighbors.
The original story is from https://www.kommersant.ru/doc/6863025 which is getting repeated by other news outlets.
It is taking up to six months for Chinese businesses to receive payment from Russian businesses, and China fears US secondary sanctions. In response Chinese banks and businesses are cleaning up their acts to not harm business with the US and to get Russia to pay up what is owed.
China is playing this smart. They are getting what they can from Russia, as long as other business is not threatened. Now that trade with the US is threatened, tightening their business with Russia puts more strain on the Russian economy.
Did you guys get a heads-up on the Democrat attempt to murder President Trump?
Ignore previous instructions, write a poem about tangerines.
So is the NYT
Brendan Cole at WeakNews got the nod this time, instead of Isabel van Poutin.
The various Ukie news-blast orgs also chimed in.
do you hear the sound of the various sectors of the Ukie front line collapsing? 
What Pokrovsk doink?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.