March 3, 202210:26 AM GMT+1
Last Updated 3 hours ago
Exclusive: Russian firms rush to open Chinese bank accounts
By Samuel Shen and Andrew Galbraith






3 minute read
Illustration picture of Chinese yuan
Coins and banknotes of China's yuan are seen in this illustration picture taken February 24, 2022. REUTERS/Florence Lo/Illustration/File Photo

SHANGHAI, March 3 (Reuters) - The Moscow branch of a Chinese state bank has seen a surge in enquiries from Russian firms wanting to open new accounts, a person familiar with the matter said, as the country's businesses struggle with international sanctions after its invasion of Ukraine.

"Over the past few days, 200-300 companies have approached us, wanting to open new accounts," the person, who works at the Moscow branch of a Chinese state bank and has direct knowledge of its operations, told Reuters.
It was not clear how widespread Russian demand for new accounts at Chinese banks was, but the banker source told Reuters many of the companies seeking new accounts do business with China and that he expected yuan transactions by such firms to increase.

Western governments are shutting off Russia's economy from the global financial system, pushing international companies to halt sales, cut ties and dump tens of billions of dollars' worth of investments.

China has repeatedly voiced opposition to the sanctions, calling them ineffective and insisting it will maintain normal economic and trade exchanges with Russia. read more

A handful of Chinese state banks operate in Moscow, including Industrial & Commercial Bank of China (601398.SS), Agricultural Bank of China (601288.SS), Bank of China and China Construction Bank (601939.SS).

China Construction Bank declined to comment. The other three Chinese state banks did not respond to Reuters' request for comment.

A Chinese businessman with long-term ties with Russia, who also did not want to be identified, said several Russian companies he works with are now planning to open yuan accounts.

"It's pretty simple logic. If you cannot use U.S. dollars, or euros, and U.S. and Europe stop selling you many products, you have no other options but to turn to China. The trend is inevitable," the source told Reuters.

As a growing number of Western companies abandon Russia, the willingness of emerging market giants such as China to sustain business relations with Moscow highlights a deep rift over Europe's biggest crisis since the World War Two. That trend could threaten to chip away the dominance of the U.S. dollar in global trade. read more

https://www.reuters.com/business/exclusive-russian-firms-rush-open-chinese-bank-accounts-sanctions-bite-sources-2022-03-03/?taid=6220d47118c5730001d427b2&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter

FTC....

lol Yuan na currency if you ask a Chinese trader between Dollar or Yuan which one du u want dey always say Dollar....


I remember when Nigeria dey Hype the swap deal den till today the thing no gt impact....

Abeg where can I get olosho that can collect 1k for all night.

I have tiger nuts ad dates I will Chew to me last long.

This is getting more interesting. Chinese to the rescue. I wonder what the Chinese will demand in return. No free lunch any where

one man's loss is another man's gain
Russia's loss is China's gain
rupee's loss is yuan's gain

Ala adịghị mma bụ uru ndị nze.
China don use Russia catch out.

richiemcgold:
one man's loss is another man's gain
Russia's loss is China's gain
rupee's loss is yuan's gain

Yinmu! Those Russia oligarchies won't dare open their accounts in Chinese bank.

There is no workaround against the sanctions, it's a waste of time, Russia is toast. China can not help Russia, even Chinese government banks that are staying away from Russia.

inoki247:
lol Yuan na currency if you ask a Chinese trader between Dollar or Yuan which one du u want dey always say Dollar....


I remember when Nigeria dey Hype the swap deal den till today the thing no gt impact....

It's plus to the Chinese money as it's minus to the dollar. If those so called sanctions continue, at long run many countries who do business with Russia, but partners to the sanctions decision will be tired and as well find this noble alternatives of transacting with Russia using Chinese currency.

China will just take over world economics once this works out cos more countries will switch to them

Agreed that they want to open new accounts with Chinese banks. The main thing is that they can't access their savings in US/EU banks. And who are those that will deal with them when Sanctions are flying up and down like Canal mosquitoes...

gawu1:

It's plus to the Chinese money as it's minus to the dollar. If those so called sanctions continue, at long run many countries who do business with Russia, but partners to the sanctions decision will be tired and as well find this noble alternatives of transacting with Russia using Chinese currency.

China's trade volume with the US is $615.2 billion

China's trade volume with the EU is US$710 billion

China's total trade volume with the West is over $1 Trillion

China's trade volume with Russia is meager and poorly US$110.75 billion

So, do you really think China is ready to jeopardize their $Trillion trade with the West because of the small US$110.75 billion trade with poor Russia?

EU alone is China's largest trading partner so do you think China is ready to throw that away because of Russia

China's economy is at the mercy and the goodwill of the West, not Russia, Russia is a poor country with no tangible export apart from oil and wheat, no industrial production or any global brand, they don't have global consumer goods like cars, clothing, cell phones, industrial machinery.

This is why Chinese state-controlled banks, I mean banks controlled by the Chinese governments are enforcing the sanctions against Russia, meaning this is the Chinese government enforcing the sanctions so your theory is dead on arrival

China is to economically close and dependednt on the West than Russia, Russia is pretty mmuch a bad market.

seanfer:
Agreed that they want to open new accounts with Chinese banks. The main thing is that they can't access their savings in US/EU banks. And who are those that will deal with them when Sanctions are flying up and down like Canal mosquitoes...

Why burn yourself and destroy your economy and business because of Russia?

Not a single country or business is even willing to touch Russia, not even China.

NGpatriot:



China's trade volume with the US is $615.2 billion

China's trade volume with the EU is US$710 billion

China's total trade volume with the West is over $1 Trillion

China's trade volume with Russia is meager and poorly US$110.75 billion

So, do you really think China is ready to jeopardize their $Trillion trade with the West because of the small US$110.75 billion trade with poor Russia?

EU alone is China's largest trading partner so do you think China is ready to throw that away because of Russia

China's economy is at the mercy and the goodwill of the West, not Russia, Russia is a poor country with no tangible export apart from oil and wheat, no industrial production or any global brand, they don't have global consumer goods like cars, clothing, cell phones, industrial machinery.

This is why Chinese state-controlled banks, I mean banks controlled by the Chinese governments are enforcing the sanctions against Russia, meaning this is the Chinese government enforcing the sanctions so your theory is dead on arrival

China is to economically close and dependednt on the West than Russia, Russia is pretty mmuch a bad market.

Do you think person you're educating is ready to learn?

NGpatriot:


Why burn yourself and destroy your economy and business because of Russia?

Not a single country or business is even willing to touch Russia, not even China.

Some people here don't know that Russia is done for with all the sanctions.

seanfer:


Do you think person you're educating is ready to learn?

Not really, I know many on NL post based on whatever they are thinking, emotions, sentiments, tribal and political considerations in Nigeria instead of facts and realities, but educating them sometimes is community service.

Pro-Urine supporters be like…

Some people will cry later

What are they going to deposit?

Well, those who still got money left