The US is now considering sanctioning Chinese banks that are helping Russia invade Ukraine. In April, the US Department of Treasury already started taking action against dozens of organizations and individuals that are allegedly helping Russia's arms industry acquire weapons.
Now, the Biden Administration could make Chinese financial institutions its latest target for sanctions. Will this effort work?
US Now Considers Sanctioning Chinese Banks Supporting Russia's Invasion
Previously, the US Treasury Department implemented sanctions against 200 individuals and companies from China and Russia, as reported by CNBC. These were imposed after Washington repeatedly warned the Asian country over its support for Russia's military.
The US government is now considering new sanctions that would isolate Chinese banks and other financial institutions from the American financial system.
According to Nikkei Asia, Joe Biden already gave the Treasury Department authority to implement secondary sanctions against financial firms in third countries that allegedly help Russia evade sanctions.
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Will Sanctioning Chinese Banks Work?
Possible sanctions against Chinese banks could target Russian energy exports to China. This could drastically affect Moscow's invasion efforts since these exports provide vital funding for Russia's military.
Experts said the US government's pressure against China is already taking effect. This can be seen in the decisions of major Chinese commercial banks, such as the Industrial and Commercial Bank of China, to refuse to accept yuan payments from Russia.
Russian companies also complain they are having difficulties paying for storage systems, computers, and other electronics. Kremlin spokesperson Dmitry Peskov acknowledged these issues.
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