Kunlun Bank, specializing in sanctions transactions, closes settlements with the Russian Federation

Kunlun Bank, (formerly Karamay City Commercial Bank), a Chinese financial institution controlled by national oil and gas corporation KNPC, has informed its customers that it will completely cease processing payments with Russia as of March 29, 2024. In the last month, most importers have been struggling to find those who can process financial transactions quickly.

Originally known as Karamay City Commercial Bank, Kunlun Bank was created in 2006 by Chinese government entities to conduct transactions with sanctioned Iranian counterparties, primarily for oil purchases. Since 2009, the bank came under the control of KNPC and acquired significant experience in working with sanctioned funds.

On the surface, Kunlun Bank seemed like a solution as it appeared to be exempt from secondary sanctions. But, since 2012, he has been on the US sanctions list for his activities with Iran and is cut off from the dollar system. However, Russian businesses turned to this desperate bank, and its refusal to cooperate underscores its “friendly” cooperation with Russian interests.

Olena Deilid

Junior Legal Secretary