For over nine months, customers of "Pochta Global," an international delivery service linked to Russian Post, have been unable to receive packages ordered from Europe and the United States.
Reports suggest hundreds of people are affected, with some shipments worth millions of rubles stuck in limbo, Forbes reported.
Payment Freeze by Chinese Banks
The trouble stems from a U.S. law passed in late 2023, enabling sanctions against foreign banks involved in transactions connected to Russia's defense sector.
In response, major Chinese banks, including ICBC, China Construction Bank, and Bank of China, have stopped accepting payments from Russian banks targeted by Western sanctions.
This payment blockade has severely impacted Russian Post's operations. In June, Russian entrepreneurs began reporting that payments through VTB Shanghai were also blocked, further complicating cross-border transactions.
According to Mikhail Burmistrov, CEO of INFOLine-Analytics, secondary sanctions and tightened compliance protocols among Chinese banks have created significant hurdles.
"While private companies found alternative solutions relatively quickly, Russian Post and its partner struggled to adapt," Burmistrov noted.
Legally, the Global Mail service is tied to Hong Kong-based RP Logistics HK Co. Limited, formerly a subsidiary of Russian Post. However, Russian Post has denied any current official connection to the company, possibly to avoid lawsuits from customers with undelivered orders.
Fallout from Sanctions
The sanctions have made it increasingly challenging for RP Logistics HK Co. to process payments.
Western banks in the EU, UK, U.S., and Canada have stopped accepting transactions linked to the company, forcing Russian Post to divest its ownership to mitigate risks.
Still, this prior connection makes the company “extremely toxic” for international partners, according to legal experts.
The situation is part of a larger trend.
Since late 2023, Chinese banks have limited financial transactions with Russian companies, blocking accounts tied to sanctioned entities and halting yuan transfers. By December 2024, China’s largest banks had ceased working with Russian credit institutions, including Gazprombank and Bank of Kunlun.
On November 21, 2024, the U.S. Treasury further tightened restrictions, adding over 50 Russian banks to its sanctions list. The effects have rippled through Russia’s economy, leaving businesses like Russian Post struggling to sustain operations in the international market.
With Donald Trump’s inauguration in January 2025, there is speculation about potential changes in U.S.-China policy.
Industry experts, including Alexey Poroshin of JSC First Group, warn that payment challenges for Russian businesses are unlikely to improve significantly, even under a new administration.
