Vladimir Shapovalov, director of the Department for Co-operation with the International Regulators at the Central Bank of Russia, said last week that some Russian banks have connected to China’s international payment system, CIPS, which China developed as an alternative to the SWIFT system to make easier international money transfers and transactions.
Shapovalov explained that trade between Russia and China is set to increase with the introduction of new payment systems, which also includes a newly established Financial Messaging System (SPFS) by the Russian Central Bank.
“We hope that Chinese banks will use this system more actively and that more banks will be connected to this system,” he said.
SPFS was established in late 2018 to fill the potential gap from the threat of removal of some Russian banks from the SWIFT system.
In October 2014, SWIFT revealed the pressure placed by some countries to remove Russia from the system.
-U.S. automotive giant withdraws from Russia
Ford's Russia-based joint venture company, Ford Sollers, said the company would stop automobile production in Russia by June 2019.
"The decision we made today is difficult, but it is critical for Ford Sollers' long-term success," the company said in its statement last week.
As part of the company’s global restructuring, Ford had already exited the Japanese and Indonesian markets three years ago.
About 1.97 million vehicles were produced in Russia in 2012, however, due to economic difficulties in the country, this figure decreased to 1.56 million last year.
Experts note that Ford is unable to compete with South Korean and European car brands in the Russian market.