Kazakhstan, Armenia, Hong Kong blocking payments from Russia over "parallel imports" of electronics - media

Banks in Armenia, Kazakhstan, and Hong Kong have lately been blocking payments from Russian companies for processors, microcircuits, and other electronics supplied through "parallel import" schemes.

This was reported by Kommersant, Ukrinform saw.

"Due to the risk of sanctions, Armenian, Kazakhstani, and Hong Kong banks have begun to block commodity payments for servers, microcircuits, processors, telecom equipment, and other electronics by legal entities from Russia. Suppliers are trying to import electronics under other commodity codes, and are also looking for alternative payment methods," the report says.

One of the interlocutors noted that Russian companies began to face payment blocks over the last two weeks. At the same time, a source close to the government noted that payments are being blocked for the supply of the latest generation telecom equipment, as well as data storage systems and servers.

The publication reports that the blocking may be related to the banks' fear of falling under secondary U.S. sanctions for cooperation with sanctioned Russian individuals and legal entities. Since the outset of the full-scale war, at least two Armenian electronics suppliers have come under restrictions, including Milur Electronics, a company that U.S. authorities believe has worked with Russian microchip manufacturer PKK Miland.

The publication's interlocutors assume that Russian companies will try to bypass bank checks by purchasing electronic components under "alternative" commodity codes, using other payment methods, or buying equipment as a whole. At the same time, the outlet’s source in the banking sector indicated that foreign banks now check payments from the Russian Federation in manual mode.

Strengthening control by banks threatens a shortage of the specified products on the Russian market. "It is impossible to purchase components, spare parts, computers, etc. directly from the country of manufacture, while through third countries it is becoming more and more difficult, therefore in half a year or a year we may face a shortage of sanctioned products," said Georgiy Vlastopulo, chief of Russia’s logistics company Optimalog.

As reported earlier, after Russia unleashed a full-scale war against Ukraine, many international companies, including manufacturers of computer equipment, announced termination of operations in Russia or exit from the Russian market.

Instead, the authorities in Russia allowed the so-called parallel import of products that are not supplied to the country directly.