MOSCOW: The Kremlin said on Thursday that Russia will take retaliatory measures in its own interests and use every legal mechanism at its disposal if the European Union uses profits from seized Russian assets to buy arms for Ukraine.
Kremlin spokesman Dmitry Peskov made the comments ahead of a meeting of EU leaders at which the matter is due to be discussed.
The Kremlin criticized the “unprecedented pressure” from Western powers targeting Chinese banks involved in processing payments from Russia, acknowledging challenges in cross-border transactions.
Responding to reports from Russian financial sources, the pro-Kremlin Izvestia newspaper revealed earlier on Thursday that certain Chinese financial institutions had ceased accepting payments in Chinese yuan from Russian entities.
Kremlin spokesman Dmitry Peskov addressed the issue during a press briefing, citing the “unprecedented US and EU pressure on China” as a source of concern, resulting in notable difficulties in financial operations.
Officials in Washington and Brussels have intensified efforts to sanction companies and banks in third countries allegedly aiding Russia in circumventing Western sanctions through trade and financial transactions.
According to Izvestia, major Chinese banks such as Ping An Bank and Bank of Ningbo, alongside several smaller banks, have halted the acceptance of payments in Chinese yuan from Russian counterparts. Last month, the Zhejiang Chouzhou Commercial Bank, a significant financial institution for Russian exporters, reportedly suspended all transactions with Russia.
Amid escalating tensions, China has emerged as a crucial economic partner for Russia, particularly since the commencement of Russia’s full-scale invasion of Ukraine in February 2022. Bilateral trade between the two countries reached $240.1 billion in 2023, marking a notable 26% annual increase, according to Chinese customs data.
Despite Western pressures, Peskov expressed confidence that the strength of Sino-Russian relations would prevail. He affirmed that such obstacles would not impede the advancement of trade ties between the two nations, underscoring the “special nature” of their bilateral relationship.
The reliance on the Chinese yuan for settling Russian exports has significantly risen, accounting for over a third of all exports, up from a mere 0.4% before the onset of the Ukrainian conflict, as reported by Russian Central Bank chief Elvira Nabiullina.
Western sanctions targeting Moscow’s banking and financial sectors have severely constrained the ability of Russian firms to engage in international trade transactions denominated in dollars and euros.
