China Moves To Restrict Financing For Russian Commodities

Related stories

FG Secures $100m for Lagos-Calabar Project from ECOWAS Bank

By Abiola Olawale The Nigerian government has reportedly secured a...

Ex- Arsenal Star Thomas Partey Faces Rape, Sexual Assault Charges in UK

By Abiola Olawale The Metropolitan Police have formally charged former...

Edwin Cortes: Prefers Being A Small Puerto Rican Than Big American

By Owei Lakemfa To be a citizen of the United...

June 12 And The International Pursuit of Justice For Abiola, By Femi Falana

The June 12, 1993, pro-democracy struggle in Nigeria is...

Breaking Down the West’s $146 Billion 2024 Defence Technology Investment

Advanced technologies like drones, sensors, and even artificial intelligence...

…According to Bloomberg, the Industrial and Commercial Bank of China (ICBC) has ceased the issuance of dollar-denominated letters of credit for physical Russian commodities purchases.

…Beijing’s move is an apparent attempt to comply with U.S. and European sanctions.

…On Friday morning, in a telephone call between Chinese President Xi Jinping and Russian President Vladimir Putin, Xi allegedly urged Putin to negotiate with Ukraine.

Beijing, a key Russian ally, has moved to restrict financing for Russian commodities purchases through two of China’s largest state-owned banks, Bloomberg reports, as Russian forces advance to Kyiv only a day after launching a full-scale invasion plan.

According to Bloomberg, the Industrial and Commercial Bank of China (ICBC) has ceased the issuance of dollar-denominated letters of credit for physical Russian commodities purchases, and the Bank of China has also restricted financing on some level, though details are not forthcoming.

Beijing’s move is an apparent attempt to comply with U.S. and European sanctions, but also follows a move on Thursday to assist Moscow by lifting restrictions on wheat imports from Russia, the world’s top producer of wheat.

The Chinese restrictions had been put in place earlier due to fears of a fungal disease.

China’s commodities financing restrictions come despite the lack of any US or European sanctions targeting Russia’s energy industry.

China is Russia’s biggest trading partner and Western sanctions will impact major investments and financial ties. Ukraine, too, is a key trade partner for China.

On Friday morning, in a telephone call between Chinese President Xi Jinping and Russian President Vladimir Putin, Xi allegedly urged Putin to negotiate with Ukraine and to forego “cold war mindsets”.

Russia’s invasion of Ukraine contradicts ally China’s attestations that the sovereignty of all countries should be protected, extending to Ukraine. Territorial sovereignty is a key hallmark of Beijing’s foreign policy, which makes this invasion tricky for the Russian ally to navigate.

On Thursday, Beijing refrained from labeling Russia’s aggression as an “invasion”, instead laying the blame at the feet of the U.S. and its Western allies.

China’s Assistant Foreign Minister Hua Chunying described the situation as “not what we would hope to see” and suggested that Washington was to blame for escalating the situation.

“China has taken a responsible attitude and persuaded all parties not to escalate tensions or incite war…Those who follow the US’ lead in fanning up flames and then shifting the blame onto others are truly irresponsible,” she said.

NB: Julianne Geiger wrote this article for Oilprice.com

 

Julianne Geiger
Julianne Geiger
Hamilton Nwosa is an experienced, and committed communication, business, administrative, data and research specialist . His deep knowledge of the intersection between communication, business, data, and journalism are quite profound. His passion for professional excellence remains the guiding principle of his work, and in the course of his career spanning sectors such as administration, tourism, business management, communication and journalism, Hamilton has won key awards. He is a delightful writer, researcher and data analyst. He loves team-work, problem-solving, organizational management, communication strategy, and enjoys travelling. He can be reached at: hamilton_68@yahoo.com

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
FG Secures $100m for Lagos-Calabar Project from ECOWAS BankEx- Arsenal Star Thomas Partey Faces Rape, Sexual Assault Charges in UKEdwin Cortes: Prefers Being A Small Puerto Rican Than Big AmericanJune 12 And The International Pursuit of Justice For Abiola, By Femi FalanaBreaking Down the West’s $146 Billion 2024 Defence Technology InvestmentG7 vs. the World: GDP, Population, and Military StrengthUS drillers cut oil and gas rigs for 10th week in a row, Baker Hughes saysExclusive! Tinubu Tips Late Ajimobi's Wife, Florence, Others for Ambassadorial PostsTinubu Mourns, Pays Tribute to Legendary Super Eagles Goalkeeper Peter RufaiNatasha vs Akpabio: Court Orders Senate President To Recall Senator NatashaHadi Sirika Denies Defection to ADC Coalition Rumors, Reaffirms Loyalty to Buhari, APCChina Snubs U.S. Crude for Third Month, Even as Ethane Trade RestartsHow Super Eagles Icon Peter Rufai passed Away at 61Dakuku Peterside’s Beneath the Surface Book Out in OctoberOil Prices Dip on Confirmation of Inventory Build
X whatsapp