"The situation is hopeless." What Payments Do Chinese Banks Not Accept. - The Moscow Times

Chinese banks are enforcing sanctions against Russia even more strictly than necessary. The Moscow Times interviewed importers and found out which goods are rejected or suspended indefinitely.

Since February, Russian companies have been remitting money to China with great difficulty, and some importers are still unclear about the fate of payments sent in late February and early March. It takes weeks to handle required documents on contacts, the purpose of the purchase and guarantees that the end buyer of the purchased products is not associated with the Russian army or the military-industrial complex.

You can never say for sure which payment will go through and which will not, but reports from Chinese banks, Russian banks, and importers suggest that Chinese banks are reluctant to accept payment for goods with certain product codes. Their list quite closely repeats the sanctions lists of the United States, the EU and their allies, but in some ways even surpasses them.

The situation with the HS code 88 is hopeless - these are aircraft and spacecraft, their parts, etc. "It is all under sanctions, no one will even try to pay for it from Russia to China," assures one of the importers of aircraft components.

For sure, there will be problems with products under the HS code 84 - these are all types of machine tools and equipment for the production of electronics and computer components, as well as parts for their creation, nuclear reactors and boilers, computers, bearings. "Not all products in this category are on the sanctions lists, but most Chinese banks, especially large ones, now put on stop or reject all direct payments under code 84. Some payments go through, but this seems to be more of a flaw on the Chinese side," says the head of the Russian foreign trade operator.

It's the same story with codes 85 and 90, electronics and computer technology, from transformers and generators to recording equipment and telephones and optical, photographic, cinematographic, measuring, medical, surgical instruments and apparatus.

"Paying for smartphones directly through China is now an activity for desperately risky guys, although only part of these products are expensive devices under sanctions. A large Russian bank recently notified us that it stops accepting payment for any electronics at all, because the money does not reach anyway," says the purchasing manager of the Russian network of household appliances and electronics. Any liquid crystal screens and with all measuring devices. Medical equipment is not under sanctions at all, but it now has to be purchased in China through third countries, because banks do not want to accept direct payments. There will also be problems with the code 9014 - compasses and measuring instruments. "You can't just pay for collars with GPS sensors for dogs from a Chinese supplier, you have to run around cans," laments a seller of pet supplies.

There were big problems in March with payment for cars and even auto parts, says a distributor of Chinese cars, despite the fact that Chinese automakers are enthusiastically increasing sales in Russia. "Representative offices of Chinese automakers take care of the problem of payments, but if you import from China yourself, both as a distributor and as an independent importer, there are big problems. You have to turn around, come up with different schemes."

"In this situation, we can only believe those of our counterparties who assure us that the problems are temporary, the dust will settle after the visit of US officials, the Chinese government will intervene, the banks will sort it out - and payments will go normally again. But for now, the situation is becoming more complicated, and the game of "figure out how to pay" is becoming more and more intricate and more expensive," concludes the top manager of a large Russian importer.

Source

@freerussia_report