Banks in the United Arab Emirates (UAE) have significantly increased scrutiny of transactions involving Russian companies, resulting in delays and outright refusals for Russia’s cross-border payments, reported the Foreign Intelligence Service of Ukraine on December 15.
In particular, UAE banks have begun rejecting transactions linked to purchases of electronics, server equipment, IT services, and industrial machinery.
They also noted this shift aligns with similar measures recently implemented by Chinese authorities.
The tighter restrictions stem from US sanctions targeting Russian financial institutions. The threat of secondary sanctions has forced banks in both the UAE and China to reevaluate their interactions with Russian entities, further complicating Russia’s international economic operations.
Chinese financial institutions have also stepped up checks on payments originating from the UAE, India, and Hong Kong, aiming to identify potential ties to Russian firms.
These measures are expected to exacerbate Russia’s economic struggles, with shortages of essential goods like semiconductor-based equipment looming by year’s end.
Earlier, Chinese banks began severing ties with Russian financial institutions affected by the latest round of US sanctions.
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