Russia can’t get oil money from China, Turkey & UAE due to sanctions
Russian oil companies are facing delays of up to several months in paying for crude oil and fuel as banks in China, Turkey, and the United Arab Emirates become more cautious about secondary US sanctions.
This is reported by Reuters.
According to the agency, payment delays reduce the Kremlin's revenues and make them unstable, allowing Washington to achieve a dual goal in the field of sanctions: to disrupt the flow of money to the Kremlin to punish it for the war against Ukraine without interrupting global energy flows.
According to eight banking and trade sources, several banks in China, the UAE, and Turkey have tightened their sanctions compliance requirements in recent weeks, leading to delays or even denials of money transfers to Moscow.
Banks, fearing secondary US sanctions, started asking their clients to provide written guarantees that no individual or legal entity from the US SDN (Special Designated Nationals) list is involved in the transaction and is not the beneficiary of the payment.
In the UAE, First Abu Dhabi Bank (FAB) and the Islamic Bank of Dubai (DIB) have blocked several accounts related to the trade in Russian goods, two sources said.
UAE's Mashreq bank, Turkey's Ziraat and Vakifbank, and Chinese banks ICBC and Bank of China still process payments but take weeks or months to process them, four sources said.
Kremlin spokesman Dmitry Peskov said there are problems with payments when asked about reports that banks in China have slowed down payments.
"Of course, unprecedented pressure from the United States and the European Union on the People's Republic of China continues. This, of course, creates certain problems, but cannot become an obstacle to the further development of our trade and economic relations (with China)," Peskov said.
