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Western sanctions force Russian importers to smuggle their goods, media reports.

The latest Western sanctions against 50 Russian banks forced Russian importers to use complex and underhand schemes to pay their Chinese sellers, the Moscow Times reported on Dec. 2, citing undisclosed business sources.
The news comes as financial transactions between the two countries are becoming increasingly difficult under Washington’s growing scrutiny.
U.S. sanctions on 50 banks in November cut the last ties serving Russian importers to directly pay their Chinese sellers, forcing them to use dubious intermediaries springing up across Russia instead, the Moscow Times wrote.
According to the new scheme, the intermediary accepts the Russian ruble and, using “great administrative power,” transfers it to the Chinese seller for a commission of approximately 3%, a financial consultant told the Moscow Times.
In the case of dual-use or sanctioned goods, importers resort to illegal means of bringing them into the country, including smuggling.
The weakness of the ruble also contributed to delays in deliveries from China, as suppliers halted the supply of their goods.
Overwhelming evidence shows that Russian military hardware, especially drones, contain parts supplied by China. Recent reports indicate that the EU obtained evidence of China’s production of “lethal aid” for Russia, namely attack drones.
Loopholes and malicious actors allowed countries and individuals to evade sanctions and continue doing business with Russia, necessitating the introduction of further packages and fine-tuning of the existing ones.

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