Russian Sanctions: China has suspended the activities of two major banks

Russian Sanctions: China has suspended the activities of two major banks

Moscow, which has been punished with increasingly severe sanctions for its military aggression, will need the Asian Infrastructure Investment Bank for the time being, but the financial institution launched by China decided to suspend its activities, citing its desire to protect its financial integrity at all costs. In the Asian Infrastructure Investment Bank, China holds 27 percent of the vote, while Russia has a six percent stake – readable on the gate.

The Asian Infrastructure Investment Bank was set up, in principle, primarily to address infrastructure gaps and reduce development disparities in Asian countries. Some sources view the bank as a competitor to the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development and the Asian Development Bank, with the goal of balancing organizations dominated by the United States and other developed countries and expanding China’s influence.

At the same time as the Asian Infrastructure Investment Bank, the Shanghai-based New Development Bank also announced the suspension of its operations in Russia. The decisions indicate that the more the world is isolated from Russia and Belarus, which helps military action against Ukraine, the less willing the allies will be for support.

However, on Wednesday Chinese bank watchdogs said they would not join the US and European governments in imposing financial sanctions on Russia.

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