The Bank of China and the Industrial & Commercial Bank of China, two of China’s largest state-owned banks, are reportedly restricting financing for purchases of Russian commodities. According to a Bloomberg report, the Chinese banks’ response could be temporary, but underscored the limits of the Chinese government’s pledge to maintain economic ties with Russia, one of its most important strategic partners. Industrial & Commercial Bank of China’s offshore units stopped issuing US dollar-denominated letters of credit for purchases of physical Russian commodities ready for export. Bank of China HAS curbed financing for Russian commodities based on its own risk assessment.
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