Chinese banks reject yuan associated with Russia as 'dirty' currency
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In the first seven months of 2024, trade turnover between China and Russia reached $136.67 billion, marking a 1.6% increase compared to the same period last year, Russian business outlet Kommersant reported on Aug. 7.
From January to July, China supplied $61.64 billion worth of goods to Russia, marking a 1.1% year-on-year decrease. Meanwhile, Russian exports to China increased by 3.9% to $75.03 billion, resulting in a positive trade balance for Russia that grew by 48% to $13.39 billion year-on-year.
By the end of 2023, trade turnover between Russia and China reached a record $240.11 billion.
Russian dictator Vladimir Putin stated that 90% of payments between Russia and China are made in yuan and rubles. However, in July, reports surfaced that Chinese banks consider the yuan from Russia to be "dirty" and are refusing to accept it. Currently, about 80% of yuan payments are being returned to Russia.
Earlier reports indicated that a Russian subsidiary of a major Chinese bank refused to work with clients from the Russian Federation.
Problems with settlements involving Chinese banks began in Russia at the end of 2023, influenced by a decree from U.S. President Joe Biden. This decree allowed the U.S. Treasury to impose secondary sanctions on third-country banks for cooperating with sanctioned Russian companies and supporting the Russian military-industrial complex.
Several Chinese banks stopped accepting payments in yuan from Russia in April 2024 due to fears of secondary sanctions from the United States.
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