Banks in Central Asia are refusing Russian companies

 

According to RBK, in July, cases of refusal to make payments to Russian companies by Central Asian banks increased by 30%. This is mentioned in the review prepared by PEK, Digital VED, GTL and Logita Trade transport companies.

It was also reported that the payment terms with Kazakhstan, Kyrgyzstan, Uzbekistan and Tajikistan have been extended by two weeks.

Roman Romashevsky, financial director of PEK, believes that the problems are related to increased compliance with banking legislation in these countries. Banks are demanding more additional documents and explanations regarding information about the company, its founders, customers, sources of funds and transaction details.

“Often payments are delayed or returned without explanation. The servicing Russian bank does not know them and cannot explain them, because the problem arises on the side of the receiving bank abroad, " says Romashevsky.

Anna Fomicheva, the founder of Digital, added that the most difficult situations arise when making payments for goods to other countries, including China, through Central Asian banks.

In June, companies in Kyrgyzstan will face difficulties. Many local banks have suspended payments due to "technical work, volatility in the ruble exchange rate and possible sharp fluctuations in the foreign exchange market." Some companies have temporarily canceled their contracts with Kyrgyz partners. While most transactions have already been restored, the average time to process payments can take up to two weeks.

According to Logita Trade CEO Tat ʻa Alekseeva , the problems started in June after the introduction of US sanctions against the Moscow Stock Exchange and other Russian companies. This led to the suspension of dollar and euro trading on the Moscow Stock Exchange.

After US sanctions were imposed in June, Kazakhstan's Central Securities Depository advised clients to withdraw Russian securities from its nominal holdings .

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