[Washington, 26th Archyde.com]–A senior US government official does not appear to be helping Russia avoid financial sanctions invaded Ukraine on the 26th, but said it would cause great damage to China.
On the same day, the United States, the United Kingdom, Europe and Canada agreed to exclude some Russian banks from the SWIFT (International Interbank Communications Association), an international bank transfer and payment system.
“There are no signs that China is moving to bail out so far,” a senior U.S. official said following the announcement. It is also a bright sign that some Chinese banks have stopped issuing letters of credit to purchase physical goods from Russia.
China is Russia’s largest trading partner in terms of both imports and exports, and in 2020, regarding one-third of Russia’s crude oil exports were destined for China. Meanwhile, China exports a variety of products, from mobile phones and personal computers to toys and clothing.
Since some of the transactions are denominated in RMB, the sanctions may not be applicable, but Russian banks and Chinese banks that do business with companies are subject to sanctions and have access to the U.S. financial system. There is a risk that it will disappear.