China banks tighten curbs on Russia after US sanctions order

China’s state-owned banks are tightening curbs on funding to Russian clients after the US authorized secondary sanctions on overseas financial firms that aid Moscow’s war effort in Ukraine, people familiar with the matter said, Report informs via Bloomberg.

At least two banks ordered a review of their Russian business in recent weeks, focusing on cross-border deals, said the people, asking not to be identified discussing a private matter. Banks will sever ties with clients on the sanctions list and will stop providing any financial services to the Russian military industry regardless of the currency or the location of the transactions, said the people.

The lenders are stepping up due diligence on clients, including checks on whether their business registrations, authorized beneficiaries and ultimate controllers are from Russia, said the people. The review will be extended to non-Russian clients conducting business in Russia or transfer critical items to Russia through a third country, they said.