• According to Bloomberg, the Industrial and Commercial Bank of China (ICBC) has ceased the issuance of dollar-denominated letters of credit for physical Russian commodities purchases.
• Beijing’s move is an apparent attempt to comply with U.S. and European sanctions.
• On Friday morning, in a telephone call between Chinese President Xi Jinping and Russian President Vladimir Putin, Xi allegedly urged Putin to negotiate with Ukraine.

Beijing, a key Russian ally, has moved to restrict financing for Russian commodities purchases through two of China’s largest state-owned banks, Bloomberg reports, as Russian forces advance to Kyiv only a day after launching a full-scale invasion plan.

According to Bloomberg, the Industrial and Commercial Bank of China (ICBC) has ceased the issuance of dollar-denominated letters of credit for physical Russian commodities purchases, and the Bank of China has also restricted financing on some level, though details are not forthcoming.

Beijing’s move is an apparent attempt to comply with U.S. and European sanctions, but also follows a move on Thursday to assist Moscow by lifting restrictions on wheat imports from Russia, the world’s top producer of wheat.

The Chinese restrictions had been put in place earlier due to fears of a fungal disease.

China’s commodities financing restrictions come despite the lack of any US or European sanctions targeting Russia’s energy industry…read more.