Chinese and Turkish banks are limiting ties with Russia after the US decree on secondary sanctions

Author:
Liza Brovko
Date:

Chinese and Turkish banks have imposed restrictions on ties to Russian clients after the United States imposed secondary sanctions against foreign financial firms that aid the Kremlin in its war.

Bloomberg and the Russian Kommersant write about it with references to sources.

Chinaʼs state-owned banks are tightening restrictions on financing Russian clients. At least two banks have begun reviewing their business with Russia, focusing on cross-border transactions.

Banks will cut ties with sanctioned clients and stop providing any financial services to the Russian military-industrial complex, regardless of currency or location of transactions.

With regard to Turkish banks, it is about the termination of correspondent relations and the termination of payment processing without formal closing of contracts. However, there are exceptions for subsidiaries of foreign banks in the Russian Federation. Now the Turkish banks are demanding more documents that will confirm that none of the participants in the chain is under sanctions. Also, they began to break relations with Russian organizations more often.