Russia’s oil companies are facing delays in payments for crude and fuel.
This is because banks in China, Turkey and the United Arab Emirates (UAE) have become more cautious amid fears of US secondary sanctions, and the delays could be up to several months, Reuters reported, citing eight sources familiar with the matter.
According to eight banking and trade sources, banks in the UAE, China and Turkey, fearful of US secondary sanctions, have begun requiring clients to provide written assurances that no person or entity on the US Treasury Department’s blacklist is involved in the transaction or is the beneficiary of the payment.
According to two sources, First Abu Dhabi Bank (FAB) and Dubai Islamic Bank (DIB) in the UAE have blocked some accounts used for trade with Russia.
Four sources said that Mashreq Bank in the UAE, Ziraat and Vakifbank in Turkey, and ICBC and Bank of China in China were still processing payments, but that these transactions would take weeks or months.
On the other hand, Kremlin spokesman Dmitry Peskov admitted in a statement yesterday that there were problems with payments, referring to reports that Chinese banks were slowing down payments.
Peskov said: “Of course, the unprecedented pressure from the United States and the European Union on China continues. This, of course, creates some problems, but it does not prevent the further development of our trade and economic relations,” Peskov said.
