Chinese Banks Reduce Russian Transactions
Chinese banks are significantly curbing transactions with Russia due to fears of losing access to the U.S. dollar and being excluded from international financial systems. This action aligns with the U.S. sanctions warning against foreign institutions aiding companies that support the Russian military.
In December 2023, the U.S. issued an executive order threatening sanctions on foreign banks supporting Russia. Initially, these threats weren't enforced, but recent aggressive stances on secondary sanctions have pushed China to reduce business dealings with Russian entities.
Tom Keatinge, director of the Center for Finance and Security in London, explained that the U.S. demands a choice: either maintain access to the international financial system or continue minimal business with Russia.
