China-Russia trade payment frictions reveal limits of de-dollarisation

China and Russia have made notable strides in shifting their trade away from the US dollar to their own currencies. However, they still face difficulties with cross-border payments. A key issue is that Chinese banks are tightening compliance to avoid US secondary sanctions. During the St. Petersburg International Economic Forum on Wednesday, Alexander Vedyakhin, Sberbank's first deputy chairman, pointed out that payment processes have become more complicated, requiring extra intermediary banks that often reject transactions without explanation. Additionally, Chinese banks are taking measures to limit direct access for Russian banks to mitigate risks.