Risks that need to be noted when developing the Russian market for export trade

GOODFIX & FIXDEX TIPS: On August 11, the U.S. Treasury Department announced a new round of sanctions against Russia.

Since the Russia-Ukraine conflict began in February last year, Russian companies have fewer and fewer import partners to choose from. Europe and the United States have withdrawn from Russia and banned exports to it. Russia has also launched countermeasures and increased taxes on some products from unfriendly countries.

Since the Russia-Ukraine conflict began in February last year, Russian companies have fewer and fewer import partners to choose from. Europe and the United States have withdrawn from Russia and banned exports to it. Russia has also launched countermeasures and increased taxes on some products from unfriendly countries.

Countries such as India, Turkey, and Greece are also vigorously exporting goods to Russia. In 2022, the trade volume between India and Russia surged by nearly 250% year-on-year, the trade volume between Greece and Russia increased by 100% year-on-year, and the trade volume between Turkey and Russia increased by 93% year-on-year.

In addition, in terms of payment methods, the RMB has become the most used foreign currency for Russian businessmen to make payments this year.

TASS reported that in the first five months of this year, 70% of the foreign currency remittances paid by Russian entrepreneurs were in RMB. From June 2022 to June 2023, the amount of payments made by Russian entrepreneurs in RMB increased every month. The Turkish lira ranks second among the foreign currencies most used by Russian entrepreneurs and is used for settlement with Turkey.

1. wedge anchor or thrubolt factory tips: Product export control

On July 31, China’s Ministry of Commerce, in conjunction with relevant departments, issued two announcements on UAV export controls, respectively imposing export controls on some UAV special engines, important payloads, radio communication equipment and civilian anti-UAV systems. , to implement a two-year temporary export control on some consumer drones, and at the same time, prohibit the export of all other civilian drones not included in the control for military purposes. The above policy will be officially implemented on September 1.

2. threaded rods products wholesale tips: Foreign exchange collection risk

Although we can currently use cross-border RMB to collect payments from Russian buyers, if the paying bank involves a sanctioned bank, there is a high probability that the payment will be returned. After all, our country’s banks don’t want their overseas branches to be affected, causing damage to their own interests.

Therefore, when we receive orders from Russia, if a Russian buyer pays in RMB for the first time, we recommend:

The exporter first asks the customer to contact his paying bank to check whether it is on the European and American sanctions list;

If it is not on the sanctions list, then ask the customer whether it supports RMB payment;

On the other hand, please contact your bank to confirm whether it can receive RMB payments from Russia (specifically which bank).

3. hex bolt hex nut and flat washer produce tips: Sanctions risk

Although we can currently use cross-border RMB to collect payments from Russian buyers, if the paying bank involves a sanctioned bank, there is a high probability that the payment will be returned. After all, our country’s banks don’t want their overseas branches to be affected, causing damage to their own interests.

Therefore, when we receive orders from Russia, if a Russian buyer pays in RMB for the first time, we recommend:

The exporter first asks the customer to contact his paying bank to check whether it is on the European and American sanctions list;

If it is not on the sanctions list, then ask the customer whether it supports RMB payment;

On the other hand, please contact your bank to confirm whether it can receive RMB payments from Russia (specifically which bank).

1. 制裁风险

3. Sanctions risk

If Chinese companies have trade relations with sanctioned Russian companies, will they be affected?

First of all, if a Russian company is on the SDN list, it must be very careful.

The suggestion from the Council for the Promotion of International Trade is that if Russian companies are involved in relevant sanctions, they need to confirm whether the list has the effect of secondary sanctions (marked subject to secondary sanctions in the list). If there is the effect of secondary sanctions, the relevant companies will be Corresponding measures are taken to sanction company transactions, including being included on the SDN list, denying executives entry to the United States, prohibiting import and export privileges, and prohibiting the use of the U.S. financial system or specific services. Under such circumstances, if a Chinese company interacts with Russia Sanctions may also be imposed on related corporate transactions.

In addition, companies involved in semiconductors, engineering services, aerospace, quantum technology, advanced computing, energy and chemicals, and minerals, if they have Russian-related export trade, should continue to pay attention to the Russian-related sanctions measures of major overseas economies and comprehensively analyze and evaluate Russian-related exports. Trade risks.