Chinese bank closes business in Russia-Belarus

GETX24

A Chinese-led development bank has suspended all business in Russia and Belarus. Russia has been attacking Ukraine since last week. Since then, the West has banned many important financial institutions, including Russia's central bank. But while China has been on Russia's side since the beginning, the bank's decision suggests that Beijing is limiting aid to Moscow. This information was given in a report of BBC.

According to the Asian Infrastructure Investment Bank (AIIB), all activities related to the two countries have been suspended in view of the current economic and financial situation.

The Beijing-based financial institution said in a statement that the bank's management had suspended operations in the two countries due to the ongoing situation. However, the overall situation is being reviewed. But the multinational bank did not say why.

Earlier, Tokyo imposed tougher sanctions on Moscow, like the United States and others. The country announced the seizure of assets of Russian leaders and three financial institutions under the sanctions. Japan will seize the assets of the state-owned Promsvyazbank and the Venezuelan Bank, along with Russia's central bank.

Moreover, Germany and its Western allies have agreed to exclude Russia from Swift, the world's leading financial transaction service. It was also decided to limit the golden passports of rich Russians.

Russia is beginning to feel the effects of the Ukraine invasion and the sanctions it has received from around the world. The country's currency, the ruble, has plummeted since the global banking payment system dropped out of Swift. The Russian central bank has been forced to raise interest rates more than twice to cope with the shock.