Half of Russia's payments to China made through middlemen, sources say

Cross posted from: feddit.de/post/11498645

Russian firms’ efforts to make payments for goods in China as secondary sanctions fears spook local banks have generated a flourishing market for middlemen, four sources told Reuters, with up to half of transactions now handled by intermediaries.

Deterred by the threat, Chinese banks are limiting their dealings with Russian companies, which in turn are rushing to open accounts at the only Russian lender with a Chinese branch, causing a bottleneck at VTB Shanghai.

The sources, including trade consultants, bankers and importers and exporters who all requested anonymity to share sensitive information, said long transaction and shipment delays have seen businesses turn to intermediaries in spite of high fees and risks of shipment seizures in third countries.

“There are a lot of (Russian) businessmen who just go from bank to bank, opening current accounts,” said one of the sources. “If their payment doesn’t go through, they go to the next one.”