Mutual payments between Russian and Chinese banks: a geoeconomic aspect

Abstract

In 2024, cooperation between Russian and Chinese banks faced significant challenges from sanction pressures, differences in financial systems, and divergent regulatory requirements. Most Chinese banks stopped accepting payments from Russian companies not only in global currencies such as the US dollar and euro, but also in national currencies — the renminbi and the rouble. Definitive solution to the payment problem between Russia and China still remains elusive, even as bilateral trade expands and their strategic partnership endures. Given Washington’s policy of “dual containment” towards both states, the issue also has a pronounced geoeconomic dimension, as restrictions on payments represent a key instrument of US foreign policy pressure and a means of maintaining dominance in global trade. This article examines the payment difficulties between the two countries’ banking systems, explores their causes from geopolitical and geoeconomic perspectives, outlines the responses of Russian and Chinese authorities, and considers potential solutions. Special attention is devoted to the role of sanctions and their influence on Chinese financial policy. The study evaluates possible governmental and business measures, such as currency clearing platforms, national digital currency settlements, and SWIFT-like alternative messaging systems. It is shown that the use of national digital currencies may be the most effective solution, protecting Russia–China trade and enabling the creation of a new BRICS trade framework.