A key Chinese bank used by Russian importers has stopped all settlements with Russia, setting the stage for a “logistics collapse” in the coming weeks, the business daily Vedomostireported Wednesday, citing anonymous businesspeople and financial consultants familiar with the matter.
Chouzhou Commercial Bank, which became the main transaction channel for Russian importers after the invasion of Ukraine, reportedly notified clients last week that it was terminating relations with all Russian and Belarusian organizations.
With Chinese New Year scheduled for Feb. 10-17, an “almost imminent logistics collapse” will hobble exports to Russia at least until March, one of Vedomosti’s sources was quoted as saying.
There is “very little chance” that Russian imports from China would resume after the public holiday, said Pavel Bazhanov, an expert in Chinese law.