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Russia’s economy is collapsing every day: Local companies open accounts in China

With sanctions imposed on the Russian banking sector following Russia’s invasion of Ukraine, more Russian companies want to open accounts with Chinese state-owned banks, Reuters reported, citing an employee of one of them who asked not to be named. There is a growing interest in foreign currency accounts denominated in yuan.

Reuters reports that in recent days, more than 200 companies have asked about the possibility of opening an account in the Moscow branch of one of China’s largest state-owned banks. According to other sources, there is a growing interest in accounts denominated in Chinese currency.

Return of Russian enterprises to China

Several major Chinese banks operate in the Russian capital, including the Bank of China. Due to the ongoing sanctions against the Russian banking sector and the disconnection of many Russian banks from the SWIFT system, some Russian companies want to open accounts with Chinese banks.

Reuters quoted a Chinese businessman doing business in Russia that the sanctions would bring Russian companies back to China and the Chinese currency.

Every day brings losses to the Russian economy, which has been hit hard by sanctions for aggression against Ukraine. The Dow Jones Russia GDR, the Dow Jones Russia GDR, fell 98 percent in two weeks. The value of 23 concerns decreased by a total of more than 500 billion US dollars.

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