Settlements between Russian, Chinese banks slow due to sanctions, incl. on Rosneft contracts - VTB
VLADIVOSTOK. Sept 7 (Interfax) - Sanctions have significantly slowed settlements between Russian and Chinese banks and this also includes payments on Rosneft oil exports to China, the first deputy president and management board chairman of state bank VTB , Vasily Titov said.
"We're having serious problems related to carrying out payments and settlements through Chinese banks. What previously took place in half a day can now take up to two weeks. This is one of the very acute problems," Titov said at the Eastern Economic Forum (EEF).
Titov later told reporters that this also applies to the settlements of various companies, including on Rosneft's oil shipments to China. "Rosneft recently ran into such problems. Prepayment goes through our bank, there's no one else there," he said.
He said sanctions are currently quite an acute problem for a number of Russian companies, including banks.
"You know that a whole range of Russian banks are limited in their ability to borrow on foreign markets. We understand how important it is for Chinese banks to carry out all requirements related to sanctions legislation, but nonetheless it seems to us that sometimes our Chinese partners approach compliance with these sanctions too meticulously, we have to explain a great deal," Titov said.
He also recalled that last fall the central banks of Russia and China agreed to use ruble/yuan swaps. "Fundamental technological matters have not been established, not agreed upon, so this mechanism cannot be fully used yet," Titov said.
He said measures need to be taken within the context of the Russian-Chinese Business Council or the banking group of the intergovernmental commission.
He also proposed considering preferences for the financial institutions of Russia and China within the context of the Business Council.
"Chinese banks on the Russian market and Russian banks on the Chinese market currently operate on equal conditions. If we created a regime of preferences, the Chinese and Russian economies would only benefit from this," Titov said.