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China’s Heihe Bank Halts Russian Payments After EU Sanctions, Disrupting Cross-Border Transactions
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![Photo of Dariia Mykhailenko]( "Photo of Dariia Mykhailenko")
China’s Heihe Rural Commercial Bank has halted payments from Russia after being placed under European Union sanctions, according to The Moscow Times. The move was reported by Vedomosti on September 1, citing sources in Russian banks and companies.
Importers said transactions to Heihe continued for about a month after the sanctions were introduced, but last week the bank stopped accepting Russian money, explaining the move as “internal infrastructure adjustments.”
According to Dmitry Dvoretsky, head of international projects at the A-Pro law firm, Heihe began suspending operations with Russian banks as early as August 11. He suggested the two-week delay before a full halt was likely due to internal approvals within the bank and coordination with the People’s Bank of China.
Payment agent Money Roo’s CEO, Alexey Ostanin, noted that other Chinese banks are now refusing to process transfers originating from Heihe since its inclusion on the EU sanctions list. He said the bank itself has no clear strategy for handling the situation, which is why payments from Russia remain frozen.
Although Heihe is a small rural bank, one of hundreds across China, it had been among the last willing to open correspondent accounts for Russian banks not under direct sanctions. After larger Chinese banks stopped processing Russian transactions, many small and medium-sized Russian businesses shifted to Heihe, explained Andrei Gusev, senior partner at the Nordic Star law firm.
He added that Russia’s settlement system with China is now fragmented, with payment agents handling a significant share of operations, while larger businesses rely on centralized clearing mechanisms.
According to The Moscow Times, the EU Council sanctioned Heihe on July 19 for providing crypto-related services that undermined restrictions against Russia. The decision came into force on August 9, banning all EU entities and companies from conducting transactions with the Chinese bank.
Earlier, Ukrainian Defense Forces found video footage from a Chinese manufacturing plant inside a Russian “Gerbera” drone that was recently downed.
