Due to Western sanctions, essential goods are now being smuggled into Russia, according to MT.

New Western sanctions against 50 Russian banks have forced Russian importers to adopt complex and deceptive schemes to pay Chinese sellers for goods.

This was reported by The Moscow Times on December 2, citing anonymous business sources.

The news comes as financial transactions between the two countries are becoming increasingly complicated under growing scrutiny from Washington.

U.S. sanctions against 50 banks in November severed the last connections that allowed Russian importers to make direct payments to Chinese sellers. Instead, dubious intermediaries are now emerging throughout Russia, according to the publication.

Under the new scheme, the intermediary accepts Russian rubles and transfers them to the Chinese seller for a fee of about 3%, a financial consultant reported.

Among such options are particularly advantageous ones already utilized by several major sanctioned banks, another financial consultant explained.

They use a Chinese agent with "significant administrative capabilities" to offer Russian importers the opportunity to pay in rubles for the delivery of virtually any goods from China – even the "most sanctioned" ones – with a fee ranging from 1% to the official yuan-to-ruble exchange rate, while in fact using proceeds from the export of Russian raw materials for payments with Russia, assured a source from The Moscow Times.

The main drawback of this scheme is that it does not operate in all provinces and banks in China, but only in those where buyers of Russian oil have accounts.

Some Chinese payment agents are working under the so-called cargo scheme – meaning they pay suppliers in China through often dubious channels and import goods into Russia via "gray" schemes or even outright smuggling, sources told TMT. This is impossible to control, but after the sanctions in November, there is no other option.

An increasing number of importers procuring dual-use or sanctioned goods are forced to resort to such schemes – otherwise, the required goods from China will not reach Russia.

Chinese agents organizing these schemes are willing to take on some risks: for example, they offer insurance against cargo loss or confiscation at customs – all for just 15% of its value, one importer shared.

"But if you need to bring a serious drone from China, it might turn out to be the most reliable option," he said.

Those purchasing non-sanctioned goods from China face a different problem – the sharp decline in the ruble's exchange rate. Due to a drop of more than 10%, many Chinese trading platforms have halted shipments to Russia, and several importers told TMT that their Chinese suppliers warned them about delays in deliveries due to the ruble's depreciation.

Background. Recall that the proposed "peace plan" by a Trump advisor includes a condition for lifting sanctions on Russia if Ukraine's terms for a ceasefire are met.