China-Russia Trade Payments Struggle: Crypto and Barter Gain Traction
Chinese regional banks, once used for processing payments from Russia, have started rejecting these transactions due to concerns about secondary sanctions. This has led to a rise in alternative payment methods such as cryptocurrency and barter.
According to Izvestiya, 98% of Chinese regional banks now refuse to handle yuan-based transactions from Russia, complicating bilateral trade. As a result, Russian companies face higher costs and complex solutions, including using Russian credit institutions in China or engaging in barter trade.
Cryptocurrency, particularly stablecoins, has emerged as a viable alternative, helping to facilitate trade between Russian and Chinese companies despite the challenging financial environment and potential for further sanctions.
Clever Robot News Desk 16th August 2024
