30.10.2024, 08:24
Intermediaries have seized the market of Russian payments to China
Source: OREANDA-NEWS
OREANDA-NEWS By now, payment agents or intermediaries have become the main way to pay for goods from China to Russia. This is reported by the Vedomosti newspaper with reference to data from banks and law firms.
For comparison, according to market participants, in early summer (before the imposition of sanctions against the Moscow Stock Exchange), the share of payment agents was about 15-20 percent. Thus, in a few months, the share of intermediaries in the structure of payment for goods from China to Russia has increased by more than 50 percentage points (pp).
Natalia Patseva, Managing partner of FTL Advisors law firm, said that many large Russian banks now offer intermediary services. At the same time, customers can use the ready-made infrastructure to make payments to China. Intermediaries usually charge interest for assistance in conducting transactions as a fee.
Experts explain the growing popularity of such a scheme by problems with conducting direct operations against the background of increased sanctions control by the US Treasury. Regional and large state-owned banks of the People's Republic of China have become afraid to service such transfers from Russian importers due to the risks of falling under secondary sanctions. Transactions involving intermediaries help hide the participation of the Russian Federation in making such payments. However, the agency scheme also carries certain risks, warns Patseva. Their accounts may be blocked along with customer funds. For this reason, it is necessary to carefully check all the documentation accompanying payments, the expert concluded.
Problems with direct transfers in trade between Russia and China have been observed since the beginning of 2024. The situation began to deteriorate closer to the middle of summer. Alexey Poroshin, the head of JSC First Group, previously stated that Chinese banks began to refuse to accept funds because of Russian names in payment documents. Such incidents, according to him, have been recorded since mid-July. Against this background, Russian importers are forced to prepare a full set of documents for transactions through third parties to conceal ties with the Russian Federation.
For comparison, according to market participants, in early summer (before the imposition of sanctions against the Moscow Stock Exchange), the share of payment agents was about 15-20 percent. Thus, in a few months, the share of intermediaries in the structure of payment for goods from China to Russia has increased by more than 50 percentage points (pp).
Natalia Patseva, Managing partner of FTL Advisors law firm, said that many large Russian banks now offer intermediary services. At the same time, customers can use the ready-made infrastructure to make payments to China. Intermediaries usually charge interest for assistance in conducting transactions as a fee.
Experts explain the growing popularity of such a scheme by problems with conducting direct operations against the background of increased sanctions control by the US Treasury. Regional and large state-owned banks of the People's Republic of China have become afraid to service such transfers from Russian importers due to the risks of falling under secondary sanctions. Transactions involving intermediaries help hide the participation of the Russian Federation in making such payments. However, the agency scheme also carries certain risks, warns Patseva. Their accounts may be blocked along with customer funds. For this reason, it is necessary to carefully check all the documentation accompanying payments, the expert concluded.
Problems with direct transfers in trade between Russia and China have been observed since the beginning of 2024. The situation began to deteriorate closer to the middle of summer. Alexey Poroshin, the head of JSC First Group, previously stated that Chinese banks began to refuse to accept funds because of Russian names in payment documents. Such incidents, according to him, have been recorded since mid-July. Against this background, Russian importers are forced to prepare a full set of documents for transactions through third parties to conceal ties with the Russian Federation.
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