Heihe Rural Commercial Bank Suspends Payments from Russia after EU Sanctions

According to information published in the "Vedomosti" newspaper:

• Payments were processed as usual even after the sanctions were officially imposed in August.

• However, around August 28, 2025, the bank ceased settlements, formally citing the need for "internal system updates."

• No clear timeline for the full resumption of processing Russian payments was provided.

According to expert assessments:

• Heihe Rural Commercial Bank was one of the few Chinese financial institutions still servicing Russian banks not under direct Western sanctions.

• Difficulties with operations began to appear as early as August 11.

• It is noted that this bank was not historically specialized in handling large transactions.

The direct cause for the halt in settlements was the EU sanctions imposed on July 19, 2025. The restrictions were based on accusations of providing services related to crypto-assets, which, in Brussels' view, violate anti-Russian restrictions. The full ban for European entities from any transactions with Heihe Rural Commercial Bank came into force on August 9. Another regional bank, Heilongjiang Suifenhe Rural Commercial Bank, was also subjected to similar restrictions.

In a retaliatory measure, Chinese authorities imposed a ban on transactions with two Lithuanian banks: UAB Urbo Bankas and AB Mano Bankas.

Payment situation between China and Russia in 2025

The situation with international settlements between Russia and China remains challenging. The case of Heihe Rural Commercial Bank is indicative. Many Russian banks, especially non-sanctioned ones, face significant difficulties in opening and maintaining correspondent accounts in Chinese banks, which fear secondary sanctions from the EU and the US. This creates serious obstacles for cross-border trade.

The EU's 19th Sanctions Package

As of this writing (September 1, 2025), the EU's 19th sanctions package has not yet been finally adopted. It is reported that its proposal is expected the week of September 1, with the package itself planned for approval in mid-September 2025. Among the measures under discussion is the possibility of introducing secondary sanctions against third countries aiding Russia in circumventing restrictions, as well as new import and export bans, targeted measures against Russia's oil and gas and financial sectors, and the so-called "shadow fleet".