G7 Summit to Address China-Russia Trade Impact on Ukraine

Date:

, No Immediate Bank Sanctions Planned

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WASHINGTON, June 9 (Reuters) – U.S. officials anticipate that the Group of Seven (G7) wealthy democracies will issue a stern warning to smaller Chinese banks next week, cautioning them against aiding Russia in sidestepping Western sanctions, according to sources familiar with the matter.

Leaders convening at the June 13-15 summit in Italy, hosted by Prime Minister Giorgia Meloni, are set to prioritize discussions on the escalating Chinese-Russian trade and its ramifications for the conflict in Ukraine.

While no immediate punitive measures against banks are expected during the summit, the focus will be on smaller Chinese institutions rather than the largest ones, as per one of the sources.

Negotiations are ongoing regarding the precise format and content of the warning, which is likely to be addressed publicly during the summit, although plans for this were not previously disclosed.

Daleep Singh, deputy national security adviser for international economics, emphasized concerns about China’s increasing support for the Russian economy, which is now heavily focused on military endeavors, posing threats to European and transatlantic security.

While Washington and its allies are prepared to employ sanctions and tighter export controls to limit Russia’s ability to bypass Western sanctions, no immediate major sanctions on major Chinese banks are anticipated due to concerns about global economic repercussions.

Instead, smaller Chinese banks have already faced restrictions on cross-border transactions with Russians, leading to a shift in Russian business to these smaller banks, along with increased utilization of underground financing channels and banned cryptocurrency.

Despite Washington’s accusations and probing of sanctions options against Chinese banks, Beijing has refuted claims of abnormal trade exchanges with Moscow.

As China and Russia bolster trade in yuan amid the Ukraine conflict, potentially mitigating the impact of U.S. sanctions, the Biden administration continues to explore strategies to counteract Chinese financial support to Russia.

By Naija247news
By Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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