Page 58 - RusRPTJun24

by the U.S. Treasury that its access to the U.S. financial system could be curbed due to its continued presence in the Russian market, Reuters reported on May 15.
New Zealand announces new sanctions over Russia's war against Ukraine. The restrictions target actors purportedly involved in the transfer of North Korean arms to Russia for use against Ukraine and Iranian actors providing military aid to Moscow.
EU seeks to stop Russian imports of Western luxury cars via Belarus. The European Union is considering imposing sanctions on Belarus as a way to close a trade loophole that has allowed Russia to import luxury cars and other banned goods produced in Western countries, the Financial Times reported on May 23.
Biden’s decree last year authorized the US to impose sanctions on any bank that helped Russia evade sanctions on the import of items essential for the defence sector. Up to now, no such sanction has been introduced, but just the possibility has been enough to seriously worry many financial institutions. The US is making strenuous efforts to ensure it is taken seriously: US Secretary of the Treasury Janet Yellen has spent months touring the world – from China to Germany – to issue warnings about financing Russian imports.
As a result, Russian companies have faced serious problems making payments to foreign banks. Turkish banks have demanded additional checks, in and in Hong Kong there are stricter rules for working with Russian clients. In China, things are especially tricky. In some cases, it is taking six months to process payments through Chinese banks, sources told Reuters last month, and the more closely the goods in question look like potential military components, the more extensive the checks and delays. The threat of sanctions have also complicated payments in Chinese yuan – which the Kremlin had been relying on as a way of mitigating the effects of sanctions, and reducing risks.
Leading Chinese banks have indeed begun to block transfers from Russia, an employee of a logistics company that imports goods from China confirmed to The Bell. However, according to him, the situation is not critical. “First, there are Chinese banks that have worked with Russia and continue to do so,” he said. “These banks, broadly speaking, are not in the top 20. Suppliers open accounts with them and send yuan from Russia. Second, many people use Turkey, the UAE or Kazakhstan and make payments through these countries."
● CBR money
The EU has decided the fate of frozen Russian assets on May 8. The ambassadors of the EU agreed on what to do with the profits from the frozen assets of Russia, the Belgian Presidency of the Council of the EU has announced. The money will be used to support Ukraine’s recovery and to provide military aid. The EU has prepared legislation that will allow the transfer of profits from frozen Russian sovereign assets to Ukraine in July. This will
58 RUSSIA Country Report June 2024 www.intellinews.com