In a surprising move, Chouzhou Commercial Bank, a key Chinese financial institution that plays a significant role in settling payments for Russian importers, has halted all transactions with the Russian Federation. This development has been reported by Vedomosti, which spoke with financial experts and business leaders familiar with the cross-border trading landscape.
The report indicates that the interruption touches all major interbank payment channels used in international commerce. Specifically, the internationalSWIFT network, the Russian SPFS, and China’s own cross-border payment system, CIPS, were all affected by the suspension of payments. The breadth of this disruption raises concerns about how existing channels will function in the near term and what this means for ongoing trade relationships and liquidity for firms operating in or with Russia.
Analysts quoted in the piece warn that a logistics breakdown is likely if settlements cannot be processed smoothly. When payment rails falter, shipments can stall at ports, warehouses, or during transit, creating a cascade of delays that ripple through supply chains. This potential bottleneck comes at a time when global markets are already navigating volatility, and businesses are seeking reliable, predictable settlement timelines to plan production, inventory, and pricing strategies.
Looking ahead, the timing could compound these challenges. China is approaching a period of extended cultural holidays that affect commercial activity across the country. The Chinese New Year is traditionally observed with a nationwide pause lasting about two weeks, officially from February 10 to 17. During this interval, many factories slow or halt production, and routine export operations may be disrupted. As explained by industry observers, this holiday season could constrain export capacity until March, increasing the likelihood of disrupted transactions and late shipments for firms dependent on Chinese-origin goods and components.
Meanwhile, financial institutions outside Russia are tightening controls on cross-border payments to China. Alfa Bank has recently indicated an emphasis on stricter compliance procedures when handling transfers to Chinese counterparts. The move reflects a broader trend among banks to strengthen sanctions screening, know-your-customer checks, and anti-money-laundering protocols as geopolitical tensions influence financial flows. For businesses, this translates into heightened scrutiny, longer processing times, and the need to maintain thorough documentation to avoid settlement delays.
Industry commentators previously warned about the cascading effects if banks in other regions reduce or suspend correspondent banking with Russia. The evolving stance of lenders in China and Turkey has been cited as a factor that could reshape the risk profile for Russian traders. Firms that rely on diverse supplier bases or that use multiple payment rails may need to adjust their risk management strategies, diversify counterparties, and consider alternative settlement arrangements to preserve the continuity of their operations during times of policy tightening and payment-system adjustments.
In practical terms, exporters and importers should prepare for tighter liquidity, more frequent confirmations of payment status, and potential delays in cargo release as settlement networks adapt to these changes. Businesses may benefit from advancing documentation, aligning payment terms with anticipated processing times, and building revenue buffers to weather short-term disruptions. Multinational buyers and sellers should monitor evolving regulatory guidance, stay in close contact with their financial partners, and be ready to pivot to alternative payment routes or currency arrangements if primary channels encounter outages or compliance-related obstacles.
From a broader perspective, the situation underscores the interconnected nature of modern trade finance. When a single bank or payment rail pulls back or shifts its risk appetite, the effect is felt across multiple markets and sectors. Stakeholders in Russia, China, and neighboring regions may need to recalibrate their expectations for settlement cycles, freight scheduling, and inventory planning. The coming weeks will reveal how quickly banks restore confidence in cross-border payments, how holiday-related pauses align with contract terms, and which counterparties emerge as the most reliable anchors in this evolving landscape.