Russia's Economic Lifeline From China Is Expiring

The expiration of a U.S. government license this week might make it even more difficult for Russian firms to pay using Chinese yuan (RMB), now the most-traded foreign currency in the sanctioned country.

U.S. Treasury's Office of Foreign Assets Control (OFAC) sanctions against the Moscow Exchange (MOEX) and its subsidiary, the National Clearing Center (NCC), took effect on June 13.

This not only led to the suspension of trading the U.S. dollar but also euro and Hong Kong dollar, which rely on the same clearinghouse infrastructure for processing trades.​ Transactions involving these currencies shifted to the over-the-counter market, increasing costs and volatility for Russian businesses and individuals dealing with them.