A new trade system launched between Russian banks and China: “China Track”

To evade Western sanctions and minimize the visibility of transactions, Russian banks have established a special system to streamline trade operations with China. This system, tentatively named “China Track,” has reportedly been operating successfully for some time, according to Reuters. Sources indicate that the initiative involves major Russian banks currently under international sanctions. The system functions without relying on the traditional SWIFT network or accounts in Western banks. Instead, it utilizes intermediaries based in “friendly” countries. Each participating bank operates through several trusted payment agents—some designated for exports, others for imports. All transactions are then centrally managed by the bank. The specific names of the banks involved have not been disclosed. According to some sources, the system allows for seamless and direct payments to Chinese banks—on the condition that the goods being traded are not subject to sanctions and that the Chinese counterpart is registered in one of 11 designated provinces. Designed primarily for large-scale companies, the system does have certain drawbacks. For instance, every payment must be individually authorized. The minimum service fee is reportedly around 1% for imports and 0.5% for exports. For comparison, during the peak of trade settlement issues with China in 2024, commission fees reportedly surged to as high as 12%. Earlier in 2024, Bloomberg reported that Chinese state banks had begun tightening requirements for clients conducting business with Russia. During the summer, Reuters noted that Russian companies were seeking alternative schemes with small regional banks to overcome financial obstacles. "China Track" appears to be a more organized and strategic response to that need.