Sheikhs refuse to help Putin: UAE banks halt payments from Russia
Abu Dhabi, capital of the UAE (Photo: Aravind Sivaraj / Wikimedia)
Banks in the United Arab Emirates (UAE) have been rejecting
payments from Russian companies for electronic components and consumer
electronics from China since the beginning of August, with the payment chain disrupted
due to the risks of secondary sanctions, according to Kommersant, citing market
participants.
Transactions are being declined when the purchased goods do
not enter the UAE. Russian organizations used companies in the UAE as a way to
transfer money to Chinese firms, but the goods were shipped directly to Russia.
Payments through the UAE were advantageous due to low
commissions. According to the publication, the blocking is being initiated by
the Chinese side.
“About 10-20% of all laptops in Russia are supplied through
channels in the UAE, and for other categories of goods, the share can reach
30%,” said one market participant.
Analysts believe that by the end of 2024, Russia may face a
shortage of consumer electronics and components that were paid for through
these countries, with prices potentially rising by 5-10%.
Earlier, it was reported that Chinese companies are
increasingly refusing to supply goods directly to Russia due to concerns over
secondary sanctions from the United States. Additionally, Chinese banks have
been returning payments from Russia for already delivered goods.
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