The Financial Times notes that China has become a particularly important source of funds for Russian companies. The Industrial and Commercial Bank of China, the Bank of China, the China Construction Bank and the Agricultural Bank of China began to significantly increase their activities in Russia. Therefore, Washington's warning to cut off delinquent lenders from the US market could have significant diplomatic implications for the Chinese government.
The decision to target the banks is part of a broader effort by the United States and others to find alternative financing for Ukraine, including a possible move by the G7 to seize some of the $300 billion in frozen Russian sovereign assets to finance Kyiv.
The new order comes as Republicans in the US Congress continue to block efforts by the Biden administration to provide Kiev with US funds after Russia's nearly two-year war in Ukraine.
Ukrainian forces are preparing for a long war of attrition with Russia next year after a failed summer counteroffensive. Analysts say Russia has ramped up its own military production and Ukraine will need to continue using its resources next year to maintain its position.
Analysts say Ukraine will have to use more of its own resources to support production lines next year as Russia ramps up its own military production. In the USA, they are looking for ways to make bigger gaps in the supply networks of hi-tech elements of weapons. In order for the Ukrainians to move significantly faster, they need the support of the United States, and the intervention of Congress. In addition, the United States and Britain are working to tighten the G7 price cap on Russian oil exports last year.