Chinese banks could benefit from the West turning its back on Russia because of the war in Ukraine. The Moscow branch of a Chinese state bank has already received a wave of applications from Russian companies that want to open new accounts.
Reuters news agency reported after talks with insiders.
In recent days, the relevant bank branch in the Russian capital has been approached by as many as 200 to 300 companies, a source said. These companies are said to struggle with international sanctions imposed on Russia and the country’s financial sector. Because the initiate wishes to remain anonymous, the name of his bank cannot be released.
Furthermore, a Chinese businessman with close ties to Russia says that several Russian companies he works with are now planning to open accounts in Chinese yuan. “It’s pretty simple logic,” explains this anonymous source. “If you can’t use US dollars or euros, and the US and Europe stop you from selling many products, you have no choice but to turn to China. So the trend is inevitable.”
Several Chinese banks are known to operate in Moscow, including Industrial & Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank. Of these institutions, only the latter responded to questions from Reuters. However, the bank declined to comment substantively.