Alfa Bank PJSC, Russia’s largest private lender owned by sanctioned Russian oligarch Mikhail Fridman, is expanding its business in China. According to Bloomberg, the bank has submitted a request to build new offices in Beijing and Shanghai. Alfa Bank already services “thousands” of Chinese companies and has a dedicated website for its Chinese clients. Earlier this year, the bank received a credit rating of AA- from a Chinese credit rating agency, marking its first ever credit rating in China.
This move towards China represents Russia’s deepening economic ties with the nation as it seeks to diversify its trade partnerships amid Western sanctions. The trade relationship between Russia and China has grown significantly with trade reaching a record $240 billion last year. Both countries are also working with other nations to reduce their reliance on the US dollar.
China’s economic partnership has been crucial for Russia, especially in the face of US and European sanctions following its invasion of Ukraine. Moscow has faced increasing isolation from global markets, with China emerging as one of its remaining trading partners. However, China has also taken steps to distance itself from Russia to avoid potential Western sanctions. State-run Chinese banks announced restrictions on lending to Russian clients last year, coinciding with the US’s decision to impose secondary sanctions on lenders aiding Russia’s trade in sanctioned goods.
