In a move to expand its business amid Western sanctions, Russia’s largest privately-owned bank, Alfa Bank, is making strides in the world’s second-largest economy. The bank, controlled by sanctioned Russian oligarch Mikhail Fridman, has recently launched a website and support service in Chinese for businesses in the country.
Furthermore, Alfa Bank announced plans to open branches in Beijing and Shanghai, becoming the first private Russian bank to do so in these major Chinese cities. The move, aimed at helping Russian clients conduct business with China more efficiently, was initially revealed in September.
Despite attempts by CNN to reach out for further comment, the bank has remained silent. In a statement back in February, the bank emphasized the importance of developing relations with China as a key focus area.
Part of Alfa Group, one of Russia’s leading financial and investment conglomerates founded by Fridman, Alfa Bank faced significant losses due to the sanctions imposed following Russia’s invasion of Ukraine in February 2022. However, the bank managed to bounce back in 2023, reporting a net profit of 118 billion rubles ($1.4 billion).
The strengthening of ties between China and Russia has been notable, with a record level of trade reaching $240.1 billion in 2023, up 26% from the previous year. Mutual payments between the two countries are increasingly being made in Russian rubles or Chinese yuan, reducing their dependence on the US dollar.
Recent accusations at the Group of Seven (G7) summit in Italy highlighted China’s alleged support for Russia in the ongoing conflict, leading to threats of further sanctions. Despite these challenges, Alfa Bank remains optimistic, noting its collaboration with thousands of Chinese companies and receiving high ratings from Chinese rating agencies. The bank has also been recognized by the Hong Kong Equity Investment Association as the “most technologically advanced” lender.
