China's two largest state-owned banks restrict funding for purchases of Russian raw materials. In particular, the offshore divisions of the Industrial \u0026 Commercial Bank of China stopped issuing US dollar-denominated letters of credit for the purchase of Russian commodity assets ready for export.. Writes an EP with reference to Bloomberg, citing sources familiar with the matter.

However, RMB letters of credit are still available to some clients subject to senior management approval..

Bank of China also limited funding for purchases of Russian raw materials, citing its own risk assessment.. According to them, this bank has not yet received clear instructions from Chinese regulators on interaction with Russia..

Such a response from Chinese banks could be temporary, especially given that Western sanctions have so far bypassed Russia's energy sector..

It is also not clear whether Chinese banks have abandoned other forms of financing for the purchase of raw materials from Russian companies and individuals and whether their policy can change..

These restrictions highlight the difficult situation facing China's largest financial institutions and President Xi Jinping..

While Russia is a major energy supplier to China, and both countries often team up during geopolitical disputes with the US, Russia's economic weight pales in comparison to Western countries that buy large amounts of Chinese exports and control Beijing's access to the international financial system, which is dominated by.

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Recall that in a telephone conversation with Vladimir Putin on Friday, Xi Jinping called on the Russian leader to negotiate with Ukraine to reduce tensions..

It was reported that the United States increased the export of liquefied gas, and China is heating up demand for it.