Russia-China Helium Trade in Doldrums Amid Payment Issues

Since Russia began exporting helium from its Amur facility in Sep'23, China has been Russia's biggest trading partner. However, the burgeoning helium trade between these nations is now encountering significant hurdles due to prolonged payment clearance times, which can take up to six months, and increased compliance checks by Chinese banks fearing Western sanctions imposed on Russia. Reports indicate that about 80% of bank transfers in Chinese yuan are being rejected without explanation, causing substantial losses for Russian businesses due to exchange rate fluctuations and commissions. These financial complications are part of broader sanctions-related pressures, exacerbated by recent US measures targeting institutions aiding Russia. Recently, even the EU imposed sanctions on Russian helium making Asia the only lucrative target market for Russia. As direct payments face delays and freezes, the helium trade could suffer, potentially leading to supply disruptions and increased costs for both Russian exporters and Chinese buyers.

Want to read more?

Subscribe to akapenergy.com to keep reading this exclusive post.

Subscribe Now