China, Russia eye stronger cross-border payments as sanctions create ‘time bomb’
- China and Russia are studying the possibility of cooperation on the Bank of Russia’s Mir payment system, according to Beijing’s ambassador to Moscow
Financial institutions in China and Russia are exploring ways to boost cross-border payments, according to Beijing’s ambassador to Moscow, amid new US sanctions aimed at interrupting financial links between the neighbours.
“Currently, the relevant financial institutions of China and Russia are studying the possibility of cooperation on the Mir payment system,” said Zhang Hanhui in an interview with Russia’s state-backed Izvestia newspaper on Wednesday.
Russia’s home-grown Mir payment system was set up by the Bank of Russia as an alternative to Visa and Mastercard.
Zhang said that financial cooperation between China and Russia was an “important component and reliable guarantee” between businesses in the two countries, adding that institutions have continued to work together on trade settlements, asset management and insurance.
“Regarding the payment problems due to sanctions from third countries, financial institutions of China and Russia will continue to strengthen contact,” Zhang said, adding that China would allow more foreign e-wallets to be used, including by Russian tourists.
“We are confident that the parties will be able to find a practical solution to this issue.”
Mir is questionable one to look at, or it may just be a short-term emergency measure
But Dr Li Mingbo, deputy dean at the Guangzhou Institute of the Greater Bay Area, said that the Mir payment system might not be actually beneficial to China.