Now international banks exposure to Russia is falling to levels
last seen before the demise of the Soviet Union.
This is largely due to Western sanctions on Moscow for
its war with Ukraine.
However, at the same time,
Chinese lenders have profited from a rise in the percentage
of trade denominated in yuan with Russia.
The US-led sanctions on Russia hinder commerce as it sneaks
its IT makes it difficult,
pardon me, for Russia to access the global payment systems
in dollars.
Banks from Europe and the United States will have less
than $60 billion in exposure to Russia this year,
compared with about 40%. $40 billion at the end of
1980s and $10 billion at the beginning of that decade.
That is a decrease from $119 billion in 2021,
before the Kremlin's order to invade Ukraine.
The shift in the banking industry is a reflection of
the widening gap that has developed between Russia and the
West as a result of trade disruptions and sanctions brought
on by Vladimir Putin's war.
Society General can complete its exit from Russia by selling
stakes in some of the country's largest companies to its
former local unit.
The deal is estimated to be 75,000,000 million dollars.
Last year, the French bank sold its stake in Ross
Bank to billionaire Vladimir Putin,
and President Vladimir Putin approved an order on Sunday to
La Rosa Bank to buy the Russian states from the
French bank.
Now the decision to exit the country is similar to
other international banks after Russia sent its troops into Ukraine.
The shift from Western lenders has allowed Chinese banks to
establish yuan trade mechanism with Moscow and this demonstrates Chinas
ability to capitalize on Russia,
switch to Asian trade lines and position itself as a
rival financial center.
About half of all currency trades on Moscow Exchange in
October consisted of yuan pairings.
In September, around 1/3 of Russia's international commerce was settled
in Chinese yuan.
The total Russian assets of China's BIG4 lenders have increased
by four times.
Since the end of 2021,
the country's Chinese banks are has breath away from catching
up to their Western counterparts in terms of interbank balances.
So.