Chinese banks tighten restrictions on Russia after Biden's sanctions order - Bloomberg

China's state-owned banks are tightening restrictions on financing Russian clients after U.S. President Joe Biden signed a decree imposing secondary sanctions on foreign financial companies that help Moscow in the war in Ukraine.

Bloomberg reports, Ukrinform saw.

According to the interlocutors, at least two banks have ordered an audit of their Russian business in recent weeks, focusing on cross-border transactions.

The sources add that banks will also cut ties with clients on the sanctions list and stop providing any financial services to the Russian military-industrial complex, regardless of the currency or location of the transactions.

The interlocutors note that Chinese banks are stepping up customer due diligence, including checking whether their business registrations and ultimate beneficiaries are from Russia.

The checks will also be extended to non-Russian clients who do business in Russia or transport important goods to Russia through third countries.

The Chinese government avoids providing any major military assistance to Russia but provides diplomatic support to Russia and intensifies trade with Moscow in areas not prohibited by sanctions.

As Ukrinform reported, U.S. President Joe Biden signed a decree on Friday, December 22, allowing Washington to impose sanctions on financial institutions that help Russia evade sanctions.