US Plans Sanctions Against Chinese Banks Over Russian Trade Ties

Written by Camilla Jessen

Apr.23 - 2024 11:23 AM CET

Photo: Shutterstock.com
Photo: Shutterstock.com
The United States, as part of pressure on the Russian Federation, is preparing sanctions against some Chinese banks.

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The United States is reportedly preparing sanctions against certain Chinese banks for their alleged role in facilitating the export of dual-use goods to Russia.

This move is part of the US's broader strategy to pressure Russia amid the ongoing conflict in Ukraine and its relations with China.

Sanctions as a Pressure Tactic

The Wall Street Journal (WSJ) reports that the US is considering sanctions against Chinese banks believed to be involved in processing payments and providing services for trade operations linked to the export of dual-use goods to Russia.

US officials have increased pressure on Beijing in recent weeks through private meetings and phone calls, aiming to dissuade China from continuing such activities. The threat of sanctions is seen as an "escalation option" should diplomatic efforts fail to influence Beijing's actions.

Sanctioning Chinese banks could have significant repercussions, as it may cut them off from the US dollar system, a crucial aspect of international finance and trade. It could also affect China's trade relations with Europe, potentially leading to a broader rift between Beijing and Western countries.

The US hopes that the risk of losing access to the dollar and the potential for strained trade ties with Europe will encourage Beijing to alter its course regarding exports to Russia.

The broader implications of such sanctions could extend beyond the targeted banks, affecting China's financial sector and international trade partnerships.

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