Chinese banks refuse to work with sanctioned Russian financial institutions
Chinese banks have decided to cut ties with Russian financial institutions affected by Western sanctions, delivering a significant blow to Vladimir Putin as the Russian economy struggles with record inflation and historically high interest rates.
Following Russia's invasion of Ukraine in February 2022, Moscow faced a barrage of Western sanctions but managed to mitigate their impact with support from its ally, China. However, this dynamic has now shifted.
Beijing, aiming to avoid secondary sanctions, has instructed its banks to cease cooperation with Russian banks.
Last month, the U.S. Treasury Department imposed a fresh wave of sanctions on Russian financial entities, including Gazprombank, the country’s main gas exporter.
(QG - Source: Daily Express / Picture: Aboodi Vesakaran/Pexels)