About 80% of payments from Russia to China in yuan are being returned because Chinese banks are afraid of secondary sanctions, Russian newspaper Kommersant reported, citing a source in the financial market.

Other newspaper sources point out that payments can sit in accounts for a few weeks and then be returned without explanation.

The situation escalated in June when the US expanded the definition of “Russian Military-Industrial Complex” to include major Russian banks.

Problems with trade in China from Russia began in December 2023, when the US announced the imposition of secondary sanctions on banks of other countries that work with Russian enterprises of the Military-Industrial Complex.

Sometimes products are delivered to Russia from China, but the Chinese supplier cannot collect his money for a period of five to six months, the managing director of the consulting company “Sapoznikof and partners” Alexei Sapoznikov told the newspaper. In order to make payments, Russian importers are forced to use the services of payment agents, said Sagrada Legal founder Oleg Usakov. Their commissions can reach up to 30% of the transferred amount.