Chinese exporters halt Russian deliveries without advance payment

Logistics companies and industry organizations told the newspaper that advance payments are primarily required for exporting so-called dual-use products, including electronics, machinery, and factory equipment. The sanctions imposed on Russia for the war in Ukraine have forced Chinese banks to conduct thorough payment checks. As a result, goods have been sitting in warehouses for a long time, causing delivery costs to increase by an average of 15%.

There have been instances where banks refunded money for already shipped products if they did not receive documents in time, ensuring the dispatch of goods to Russia would not result in sanctions, the president of one of the companies told "Izvestia."

Due to concerns about secondary sanctions, Chinese financial organizations sometimes return payments regardless of whether the shipment reached Russia or not. A strange situation has arisen: the shipment arrives in Russia from China, and the amounts paid for it are refunded, she added.

Trade between Russia and China became complicated after the EU introduced its 12th package of sanctions and after a decree by President Joe Biden imposed restrictions on, among others, banks of third countries, emphasized the Moscow Times portal. On August 23 at 10:00 AM ET, the U.S. Department of the Treasury added 400 legal and natural persons, as well as seven tankers, to the sanctions list. The press service of the department explained that their products and services support Russia's war efforts and circumvent previously imposed sanctions.

A few days later, banks in the United Arab Emirates began massively blocking payments from Russian companies for electronic components and consumer electronics from China, reported the portal, dealing a blow to one of the last supply channels for Chinese gadgets and equipment to the Russian Federation.