Kazakh Banks Halt Money Transfers from Russia to China

Russian businesses are facing new challenges in Kazakhstan, which has been serving as a transit hub for settlements with China and the import of Chinese goods, according to a report by The Moscow Times. Several Kazakh banks, the publication said, have stopped transferring money from Russia to Chinas.

Kazakhstan became a major hub for importing goods into Russia after Western companies left the Russian market and banking sanctions limited the ability to make payments in major world currencies after Russia’s full-scale invasion of Ukraine in 2022. 

However, beginning in April last year, Kazakh authorities tightened control over the movement of goods across the EAEU border. In October, the country introduced a ban on the export of 106 types of sanctioned products to Russia.

Russian businesses started having difficulties with Kazakh banks in the spring, soon after US President Joe Biden expanded the powers of the US Treasury, allowing it to impose secondary sanctions against any banks in the world involved in transactions with the Russian military-industrial complex.

Related: Russian Commodities Firms Turn to Stablecoins to Evade Sanctions

Under the threat of being disconnected from the global dollar system, banks in Turkey, the UAE, and China began blocking settlements with Russian companies. The visit of Russian President Vladimir Putin to Beijing, from whom businesses were expecting a solution to the problem, has so far been unsuccessful in improving the situation, and problems have even worsened, according to representatives of importing companies.

Some regional agricultural banks in China, through which Russian money was best “slipped,” have announced a temporary suspension of transactions with Russia. Large banks in China now request an export declaration for most contracts with Russia, depriving Russian buyers of the opportunity to cheat and take out more sanctioned equipment under the guise of less sanctioned items.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Silver47 Completes Property-Wide Geochemical, Rock Sampling Program At Adams Plateau, Identifies Numerous Targets

Altamira Gold Identifies Presence Of Second Mineralized Porphyry Body At Cajueiro

Related News

What’s Roman Abramovich Going To Do About It?

There is a bluster in the Western world, and especially in the Western press, as...

Thursday, March 10, 2022, 04:14:00 PM

White House: Oil Companies Have A “Patriotic Duty” To Increase Production

The White House continues to go after oil refineries, pointing out that they a patriotic...

Thursday, June 16, 2022, 01:30:00 PM

Moldova Government Resigns, President Names New Prime Minister Candidate

Moldova, a small former Soviet republic with a population of 2.5 million tucked between Ukraine...

Friday, February 10, 2023, 02:47:00 PM

Kazatomprom Ex-CCO Jailed For 4.5 Years Over ₸20.1 Billion Uranium Shortfall

Former Kazatomprom Chief Commercial Officer Askar Batyrbayev was sentenced by an Astana court to 4.5...

Tuesday, May 27, 2025, 11:21:00 AM

Putin Critic ‘Falls’ Off Building While On Vacation In India

One of Russia’s wealthiest lawmakers has died while on vacation in the Rayagada region of...

Tuesday, December 27, 2022, 10:12:00 AM