G7 Plans to Warn Small Chinese Banks About Relations with Russia

Two informed sources reported that "U.S. officials expect G7 countries to issue a stern warning this week to small Chinese banks to cease their assistance to Russia in evading Western sanctions." The leaders, meeting at a summit hosted by Italy from June 13 to 15, are also expected to focus significantly during their discussions on the threat posed by the booming Chinese-Russian trade to the conflict in Ukraine and what actions should be taken regarding it. An American official involved in the summit arrangements and another source familiar with the matter indicated that public statements on the issue regarding Chinese banks will likely emerge from these discussions. The United States and its G7 partners—Britain, Canada, France, Germany, Italy, and Japan—are not expected to take any immediate punitive actions against any banks during the summit, such as restricting their access to the SWIFT financial payment system or their ability to obtain U.S. dollars. One of the sources noted that the G7's focus will be on smaller institutions, rather than major Chinese banks. According to the two sources, who requested anonymity due to their current diplomatic status, discussions regarding the precise nature and content of such a warning are still ongoing.