Chinese bank halts Russia payments after EU sanctions
China’s Heihe Rural Commercial Bank has stopped processing payments from Russia after falling under European Union sanctions, Russian outlet Vedomosti reported on Sept. 1.
Heihe, a small lender near the Russian border, had been one of the few Chinese banks still handling transactions for Russian companies after larger Chinese banks pulled back. Many small and medium-sized Russian businesses had turned to it as a last option, News.Az reports, citing foreign media.
The EU sanctioned Heihe on July 18 for allegedly helping Russia evade restrictions through cryptoasset services. The measures, which took effect on Aug. 9, barred EU entities from dealing with the bank. Payments reportedly continued for weeks but were blocked last week. Importers told Vedomosti the bank cited “infrastructure adjustments” for the halt.
The move underscores the tightening financial squeeze on Moscow. While Beijing maintains it is neutral in the Ukraine war, it continues buying Russian oil and supplying dual-use goods, indirectly supporting Russia’s war effort.
The report coincided with Vladimir Putin’s meeting with Xi Jinping at the Shanghai Cooperation Organization summit in China on Sept. 1, where Moscow sought to deepen economic ties. Following the talks, the head of Russia’s sovereign wealth fund said new joint investment projects would soon be announced.
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