China Deals New Blow To Russian Trade

Russian business is at a loss.

Russian companies importing goods from China via the Primorye railway routes this week faced new, much more serious payment obstacles. Chinese banks refuse to accept payments, demanding more detailed information about delivery routes. Journalists from The Moscow Times spoke confidentially with Russian entrepreneurs and found out the scale of the problem.

This greatly complicates the process of paying for goods supplied from China, even if they are not subject to sanctions. Russian importers expressed concerns about such requirements even earlier, and their assumptions were confirmed in reality.

The situation creates additional difficulties for companies already suffering from the negative consequences of sanctions and restrictions on international trade. Emerging problems with payment rates from China could have a serious impact on Russian imports and the economy as a whole.

Now Russians are thinking about how to solve the problem: transhipment via sea transport will significantly raise prices. Kazakhstan is very wary of the transit flow to Russia.