Business data

    Moscow and Beijing are taking complex measures to avoid payment delays, including using small regional Chinese banks, due to the risk of secondary U.S. sanctions on larger banks that trade with Russia. Qifa, originally focused on importing Chinese consumer goods to Russia, has started bilateral trade this year, earning commissions from Chinese buyers in yuan and Russian buyers in either yuan or roubles, according to founder Sun Tianshu.

   The highest demand is for industrial goods from China, such as car parts, agricultural machinery, tools, and equipment, according to Tianshu. In the future, Qifa plans to expand into commodities, prioritizing energy products long-term. Trade between Russia and China reached a record $240 billion in 2023, and Qifa predicts it will exceed $350 billion annually by 2028, with a tenfold increase in B2B digital commerce market share. Deputy board chairman Kyle Shostak noted that Qifa uses a wide network of financial institutions to ensure smooth payments, addressing increased settlement problems this year.

   Last month, Reuters reported that China is allowing small, regional banks, which can operate without attracting U.S. sanctions, to facilitate continued payment flows with Russia.