Translation. Region: Russian Federation –
Source: Mainfin Bank –
Why do Chinese banks want to work in Russia?
The desire of foreign banks from countries conducting trade and economic activities with Russian partners to open structural divisions in the Russian Federation is explained by a number of reasons:
the risk of secondary sanctions for working with individuals subject to restrictions in China and other countries; blocking sanctions imposed on most domestic financial institutions; difficulties with international payments – Chinese banks are increasingly refusing to make payments to Russians.
In fact, the volume of trade between Russia and China continues to increase, but it is becoming increasingly difficult for the parties to conduct settlement operations. Opening offices of Chinese banks in the Russian Federation would solve the problem that has arisen due to the pressure of sanctions.
What operations are available to foreign banks in Russia?
Pursuit banks from China and Vietnam to open offices on Russian territory is also connected with the approval in 2024 of a bill allowing foreign credit institutions to operate in the Russian Federation. Thus, the document allows foreign banks after opening a branch:
provide banking services to businesses; make payments and transfers between legal entities; collect cash and other payment documents; open accounts for entrepreneurs.
“Small banks from China and Vietnam are ready to come to Russia and start working – the signals are coming against the backdrop of the development of economic relations: companies want to ensure settlements in international trade,” the State Duma stated.
Uninterrupted payments are one of the development areas agreed upon by Beijing and Moscow: the parties previously agreed to develop the settlement infrastructure, including by opening offices and divisions of credit institutions.
13:10 10/29/2024
Source:
Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.
Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.
https://mainfin.ru/news/problems-with-payments-there will be-no-banks-of-China-and-Vietnam-will-open-branches-in-Russia