China's Bank halts yuan deals with sanctioned Russian banks

Transactions in yuan between Russia and China have been complicated. The Bank of China does not intend to sever all ties with its Russian partners, continuing to cooperate with credit institutions not subject to sanctions.

The Bank of China has decided to suspend cooperation with Russian banks that are on the US sanctions list, SDN (Specially Designated Nationals List, a list of entities developed by the Office of Foreign Assets Control of the Treasury Department) - according to information obtained by the Russian newspaper Kommersant.

Nevertheless, the bank does not intend to sever all ties with its Russian partners. It will continue cooperating with credit institutions that are not subject to sanctions.

The Bank of China is responsible for a significant portion of the payment traffic between Russia and China. However, Kommersant notes a noticeable trend towards shifting these flows towards non-bank intermediaries.

According to the newspaper, the Bank of China has decided to stop processing yuan payments from Russian banks on the US SDN list. This change will take effect on June 24th.