Russia and China Expand Bank Netting System to Bypass Western Payment Channels
Russia and China are increasingly utilizing a bank netting system, known as the China Track, to settle bilateral trade payments without relying on the SWIFT international payment system or accounts held with Western banks. This mechanism allows export proceeds to finance imports, offsetting obligations between the two countries. For instance, if China purchases $100 million in Russian oil and Russian companies buy $80 million in Chinese machinery, only the remaining $20 million needs to be settled. Russia’s financial watchdog chief, Yury Chikhanchin, explained this arrangement to President Vladimir Putin in July 2025, detailing how exporters can make their proceeds available to importers, with transactions reconciled domestically. This development, reported by Reuters in April 2025, signifies an adaptation of financial infrastructure to circumvent sanctions pressure. Additionally, Russian gold exports to Hong Kong surged in the first seven months of 2026, nearly tripling the volume from the same period in ...
