Russian Banks moving towards Chinese UnionPay system to bypass SWIFT payment sanctions

Yeah we are going to crush Russia’s economy. Actually no, their entire banking system will shift to the Chinese UnionPay system, through Chinese regulated banks. And they will replace Western Credit Cards with Chinese issued cards processing through the same CCP controlled network. The SWIFT sanctions will push foreign countries dependent on various Russian exports (not just oil) to establish UnionPay processing arrangements, outside of the SWIFT system and US retaliation.

Playing right into China’s hands. And you can bet that this contingency was set up, just waiting to flip the switch, as part of coordination between Putin and Xi before combat ever started…

Russian banks turn to China to sidestep cutoff from payments systems


Decoupling is possible…


Russia will turn to the Chinese banking system. Russia will dump cheap oil and coal on China. With this, China will manufacture more with cheap energy and cheap labor (or slave labor). We will buy these manufactured goods at Walmart. China will get our money. They will use that money to pay Russia for….


Oh most definately, it is one of China’s major strategic objectives to change the majority of global payment transactions from Western the Western controlled SWIFT system to UnionPay, which they control. Don’t be surprised when Mastercard, VISA and American Express seek to issue their cards through Chinese Banks under UnionPay. Otherwise they miss out on all the transaction fees.


It will be more than Russia.

How are they going to use US dollars to pay Russia?

Money is fungible.

They aren’t. The goal is to get the trade settling in Renmenbi and replace the dollar as the dominate reserve currency along with wrestling control of international settlements away from the West.

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so? sanction them

They want that… To hasten countries dependent on trade with them to establish GlobalPay channels outside of SWIFT and hasten the neutralization of SWIFT and US/Western control over international finance.

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the assumption that would happen with anyone outside their orbit besides russia is rather wild. we need to put tier 3 sanctions on russian energy. if china doesn’t like it they can sell their crap somewhere else. except of course that anywhere that can buy it would be with us, cause they have to sell their crap too. if not to the us and eu, who the ■■■■ will they all sell it to?

But they need to use their US dollars on US goods and services.

So in order to pay Russia they would have to convert those dollars into something they could then sell to pay the Russians.

I’m not saying a Russia/China-centric currency and exchange system may not be in the offing…but it’s not going to be that simple.

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China has huge dollar holdings. It’s not going to be easy to do that.

Not saying they aren’t going to try…

Money is not the only currency that can be used to settle accounts. The value of goods can be pegged to a quantity of oil. It can also be denominated in Renminbi. This is no where near as hard as people think, and China has been laying the groundwork for years.

Deal with biden’s corrupt credit card buddies, or deal with biden’s chi-com buddies.

To be honest, I am surprised it has taken this long for the bad guys to setup an alternate system for this. Sanctions and other financial penalties have been in the tool box for years

You said they will pay Russia with US dollars.

I’m pointing out they cannot do that.

They’ve been trying to bust the petrodollar for years.

The problem is these countries want to do business with the United States because we are still the market of choice.

So they never get serious about it for that very reason.

Alas, the days of American preeminence are coming to an end

The problem with today’s world is every great power has its strengths and weaknesses. No one or even coalition can dominate.

We are headed for a period much less stable than either the Cold War or the postwar period after it.

In a world with nukes that is frightening.